CPCV — the Portuguese pre-contract
In Portugal a property purchase runs in two stages: first the CPCV, then the Escritura. Anyone who does not understand this risks substantial penalty payments.
What is the CPCV when buying property in Portugal — and why is it risky?
In Portugal the purchase runs in two stages: first the CPCV (Contrato-Promessa de Compra e Venda), the binding preliminary contract, then 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.
What is the CPCV?
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
10–30% on signing
On signing the CPCV the buyer usually pays a 10–30% deposit. With that, the purchase is contractually binding for both sides.
Deposit forfeited
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
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
- Agreed purchase price and deposit amount
- Deadline for the Escritura (usually 2–6 months)
- 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
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. I coordinate exactly this.
The usual deadline
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
The seller's lawyer is not your lawyer. Cost approx. €1,500–3,000 depending on complexity — money well spent. With developer CPCVs every clause must be reviewed individually.
Apply for the tax number
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.
Frequently asked questions
What is the CPCV?
What are the penalties for backing out of a CPCV?
How high is the deposit for the CPCV?
Do I need my own lawyer for the CPCV?
How long does it take from the CPCV to the Escritura?
What happens if my mortgage is not approved?
Are developer CPCVs more dangerous than private CPCVs?
Mortgage and purchase process from a single source
I guide you from the NIE/NIF application through the bank and CPCV to the Escritura — with a lawyer and gestor on the ground.
Read on
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