Portugal's preliminary purchase contract — a binding pre-completion agreement between buyer and seller that fixes price, terms, and a completion date, typically with a 10% deposit.
The CPCV — Contrato de Promessa de Compra e Venda — is the preliminary purchase contract used in Portuguese property transactions. It is a legally binding agreement between buyer and seller setting out the purchase price, payment terms, completion date, and any conditions that must be satisfied before the final deed (escritura de compra e venda) is signed at the notary. The CPCV is the Portuguese equivalent of the UK's exchange of contracts.
The CPCV typically requires the buyer to pay a deposit (sinal) of 10% of the agreed purchase price. Under Portuguese law (Código Civil, Articles 441–443), the sinal provisions protect both parties. If the buyer withdraws after signing the CPCV, they forfeit the sinal. If the seller withdraws, they must return double the sinal to the buyer (i.e. refund the deposit plus pay an equivalent penalty). This makes the CPCV a serious commitment for both parties and is one reason why Portuguese property transactions move carefully through due diligence before the CPCV is signed.
The CPCV should be drafted or reviewed by your Portuguese property lawyer before you sign it. Key clauses to verify include: accurate property description matching the Caderneta Predial and Land Registry (Conservatória do Registo Predial); clear completion date and any extension provisions; conditions precedent (condições suspensivas) such as mortgage approval, planning permission, or the seller obtaining a habitation licence (licença de habitabilidade); IMI and IMT payment responsibilities; and whether the property is transferred free of charges, mortgages, and occupants.
After signing the CPCV, your lawyer should register the CPCV at the Conservatória do Registo Predial. This provisional registration protects the buyer's position by preventing the seller from making further dispositions of the property in the period between the CPCV and the final escritura. Without this registration, a subsequent buyer who registers first could take priority over you.
The completion date in the CPCV is agreed between the parties but must allow enough time for all due diligence, mortgage processing (if applicable), payment of IMT and IS, and notary scheduling. Typically, completion is set 4–12 weeks after the CPCV for straightforward transactions. Off-plan new-build purchases may have CPCVs with completion dates years in the future, with stage payments tied to construction milestones.
The CPCV is not legally mandatory — parties can proceed directly to the escritura. However, in practice, virtually every Portuguese property transaction uses a CPCV to lock in the agreement and secure the buyer's position while final due diligence and financing are completed. Proceeding without a CPCV is unusual except in the simplest all-cash transactions.
Under Portuguese law, if the seller breaches the CPCV and refuses to complete the sale, they must return double the buyer's sinal. So if you paid a €30,000 deposit, the seller owes you €60,000. Alternatively, you may seek specific performance through the courts (execução específica) to force the sale through — though this is slower.
Yes. With a Portuguese lawyer holding a power of attorney (procuração), the CPCV can be signed on your behalf. The CPCV itself is typically signed before a notary (notário) or certified by a lawyer, though private signatures are also legally valid if both parties agree. For added security, have the CPCV signed before a Portuguese notary regardless of where you are.
Browse our verified directory of English-speaking law firms across Portugal. All listed firms offer English-language legal services to expats and foreign nationals.
Find My Lawyer in 60 Seconds