CPCV: what protects the buyer

What you are promising

A Portuguese promissory sale agreement, or CPCV, commits the parties to completing the purchase on the agreed terms. It does not, by itself, transfer ownership. Before signing, check that you can meet the price, deadlines and obligations you are accepting.

Request the full draft and attachments with time to read them. An online template may help identify topics, but it does not replace legal review of the property and your circumstances.

Identify the people, property and documents

Compare the seller’s identity and authority with the permanent land registration certificate. Check the identification of the unit, garage, storage room and any other included spaces. A property listing is not enough.

The wording should clarify the total price, deposit, further instalments, balance, completion date or deadline, key handover and condition in which the property will be delivered. Identify included attachments and equipment.

If there is a mortgage, tenancy, usufruct or another relevant circumstance, request a documented explanation of how it will be addressed. Also review the planning documentation and condominium charges before assuming everything is in order.

If you need a mortgage, put that condition in writing

A loan simulation is not loan approval. Banco de Portugal distinguishes information supplied during a simulation from the European Standardised Information Sheet, known in Portugal as FINE, issued with approved terms.

If the purchase depends on financing, negotiate an express condition suited to your case before signing. It should specify the amount required, the deadline for a decision, the evidence needed, how the decision must be communicated and what happens to the deposit, including its repayment deadline, if the condition is not met.

Consider a bank valuation below expectations as well. A vague phrase such as “subject to finance” can leave uncertainty about partial funding, delays or steps required of the buyer. A bank refusal does not, by itself, create an automatic right to a deposit refund.

Understand the deposit and non-performance

The Portuguese deposit, or sinal, is not simply a reservation without consequences. Under Article 442 of the Civil Code, non-performance attributable to the party who paid it may allow the other party to keep it. If attributable to the recipient, a right to claim twice the deposit may arise.

These consequences depend on the legal nature of the breach. A delay does not automatically amount to definitive non-performance. Before cancelling, missing completion or demanding money, obtain advice on the contract, communications and applicable deadlines.

Article 830 provides for specific performance through a judgment replacing the defaulting party’s declaration when legal requirements are met. For promises covered by Article 410(3), the parties cannot exclude that right. A deposit does not always mean that losing it or repaying twice its amount is enough to leave the deal.

Check formalities and final conditions

Article 410 requires a signed document in the cases it covers. For certain promises concerning buildings or units, it also requires signatures to be authenticated in person and certification that the use or construction licence exists. Ask the professional handling the agreement to verify these requirements and how the planning title or any exemption applies to the particular property.

Do not remove formalities simply because a template waives them. Have financing, missing documents, extensions and default clauses reviewed before transferring the deposit. Keep the signed contract, attachments and payment evidence. Relevant conditions should be written down, not merely promised in conversation.