Preliminary contract in Portugal (CPCV): what does it bind you to, and why is it risky?
In Portugal a property purchase runs in two stages: first the CPCV, then the Escritura. Its meaning matters — anyone who does not understand this risks substantial penalty payments.
CPCV Portugal: when does signing the pre-contract become risky?
The CPCV in Portugal is a binding pre-contract, and it becomes risky when you sign it without secured financing. The deposit is usually 10–30 %; if the buyer backs out, it is forfeited, and if the seller backs out, they repay double. Get a bank pre-approval before signing or include a mortgage clause, and always use your own lawyer.
How the CPCV binds buyer and seller
The CPCV is a binding pre-contract that sets out the purchase price, the deposit, the deadline for the Escritura and the conditions. Ownership does not yet transfer, but both sides are contractually bound.
- Deposit 10–30%, forfeited or repaid double: The binding pre-contract between buyer and seller; deposit usually 10–30%. If the buyer backs out they lose it; if the seller backs out they repay double.
- Always your own lawyer: Absolutely — never sign without your own lawyer, the seller's lawyer is not yours. Have developer CPCVs reviewed clause by clause.
- Without a mortgage clause the deposit is at risk: Without a mortgage clause you lose the deposit. So get a bank pre-approval before the CPCV, or include the clause condicionado à aprovação de crédito.
- What is the CPCV in Portugal — and why is it risky? The CPCV in Portugal (Contrato-Promessa de Compra e Venda) is the binding preliminary contract, the first of two stages before the Escritura, the notarial deed.
The CPCV is not a non-committal reservation — it legally binds both sides. A deposit (sinal) usually changes hands with it.
That is where the risk sits: if the buyer pulls out, the deposit is forfeited; if the seller pulls out, they normally owe double the sinal back. Underestimate it, and you sign a de facto obligation to buy before your financing is secured.
That is why the bank's financing approval — or at least a solid feasibility check including the tasación — belongs before the CPCV signature, not after. Also verify clear title, freedom from charges and the deadlines in the contract.
Purchase and financing interlock closely in Portugal; steering both from one source means you sign the CPCV only once the bank has given the green light.
The Contrato-Promessa de Compra e Venda (CPCV) is a binding pre-contract between buyer and seller. It sets out the purchase price, the deposit, the deadline for the Escritura and the conditions. Ownership does not yet transfer at this point — but both sides are contractually bound.
Deposit & penalty payments
On signing the CPCV the buyer usually pays a 10–30% deposit. If the buyer withdraws, the full deposit is lost, and if the seller withdraws, they must repay double the amount.
- 10–30% on signing (Deposit): On signing the CPCV the buyer usually pays a 10–30% deposit. With that, the purchase is contractually binding for both sides.
- Deposit forfeited (Buyer withdraws): If the buyer withdraws from the purchase, they lose the full deposit — no refund possible. This rule is mandatory under Portuguese civil law.
- Double the deposit back (Seller withdraws): If the seller withdraws, they must repay the deposit at double the amount. Protection for the buyer against stalling tactics.
The content of a sound CPCV
A sound CPCV states the agreed purchase price and deposit amount, the deadline for the Escritura, the conditions precedent, the remedies in case of non-performance, the buyer's NIF and the identification of the property.
Agreed purchase price and deposit amount; Deadline for the Escritura (usually 30 to 120 days); Conditions precedent — e.g. mortgage approval, developer permits; Remedies in case of non-performance; The buyer's NIF; Identification of the property (Catastro/Caderneta Predial).
Important: with developers (new builds) check whether the CPCV guarantees performance of the contract in addition to a penalty payment. Some developer CPCVs allow unilateral changes to the contract — that is a warning sign.
What you must do before signing
Obtain a pre-approval from the bank before the CPCV is signed, otherwise you risk the deposit if the mortgage falls through. The usual span to the Escritura is 30 to 120 days.
Obtain a pre-approval from the bank (Sort the mortgage before the CPCV): Advisable: obtain a pre-approval from the bank before the CPCV is signed. Otherwise you risk the deposit if the mortgage falls through after all. we coordinate exactly this.
The usual deadline (30 to 120 days to the Escritura): The usual span between the CPCV and the final deed of sale. For new builds often longer (until completion). During this time, finalise the mortgage, apply for the NIF, open the bank account.
Never sign without a lawyer (Your own lawyer — essential)
The seller's lawyer is not your lawyer. Cost approx. €1,500–3,000 depending on how much there is to check — money well spent. With developer CPCVs every clause must be reviewed individually.
Apply for the tax number (NIF before the CPCV): A Portuguese tax number (NIF) is mandatory for every property transaction. Apply through a Portuguese tax representative; takes 1–4 weeks depending on the route.
IFICI / NHR successor (Tax · Portugal): The 2026 tax regime.
Frequently asked questions
What is the CPCV?
Contrato-Promessa de Compra e Venda — a binding pre-contract in Portugal between buyer and seller. It sets out the purchase price, the deposit, the deadline for the Escritura and the conditions.
What are the penalties for backing out of a CPCV?
If you as the buyer back out, you lose the full deposit — no refund, no negotiation, this is mandatory under Portuguese civil law. If the seller backs out instead, they must repay double the deposit. There is no middle ground unless the CPCV itself contains a specific escape clause (e.g. subject to mortgage approval).
How high is the deposit for the CPCV?
Usually 10–30% of the purchase price on signing. If the buyer withdraws, they lose the deposit. If the seller withdraws, they must repay double the deposit — mandatory Portuguese civil law.
Do I need my own lawyer for the CPCV?
Absolutely. Never sign a CPCV without your own lawyer — the seller's lawyer is not your lawyer. Cost €1,500–3,000. With developer CPCVs every clause must be reviewed individually.
How long does it take from the CPCV to the Escritura?
Usually 30 to 120 days. With developers (new builds) considerably longer — until completion. During this time, finalise the mortgage, apply for the NIF, open the bank account.
What happens if my mortgage is not approved?
If the CPCV contains no mortgage clause, you lose the deposit. Therefore: obtain a bank pre-approval before the CPCV, or have the clause condicionado à aprovação de crédito included.
Are developer CPCVs more dangerous than private CPCVs?
They tend to be, yes. Developers draft CPCVs in their own favour — with clauses on construction delays, price adjustments, guarantees. Have every clause reviewed individually by your lawyer.
Mortgage and purchase process from a single source
We guide you from the NIE/NIF application through the bank and CPCV to the Escritura — with a lawyer and gestor on the ground.
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Content by Siegfried Perini — local brand representative since 2019, active in real estate since 1992, entered in the German intermediary register (§ 11a GewO) as a person directly involved in brokerage and advice. Point of contact for German-speaking buyers in Spain and Portugal. Brokerage by Olga Nikushkina, mortgage credit intermediary under § 34i German Trade Regulation (GewO); in Portugal through a locally licensed intermediary.