CPCV Portugal — the Preliminary Contract Explained
The CPCV is Portugal's binding preliminary property contract — unlike a non-committal reservation, it already legally obliges both parties to buy and sell respectively, well before the notarial Escritura is signed. A binding contract without secured financing is precisely the constellation in which the deposit is at stake.
What happens to the deposit (sinal) if you withdraw from a CPCV in Portugal?
If the buyer withdraws from the CPCV without a contractually recognised reason, the deposit (sinal) is generally forfeited in full to the seller. If the seller withdraws, they typically have to repay double the deposit received to the buyer. The CPCV is fully binding, so settle the state of your financing before signing it, not after.
What matters about these two points
The answer box above states the case. The two points it is built from carry their own heading here — together with what each of them means in practice.
How the CPCV differs from a plain reservation: In practice: settle the state of your financing before signing the CPCV, not after. A binding contract without secured financing is precisely the constellation in which the deposit is at stake.
The financial commitments that typically come with it
The symmetry of the rule protects both sides — but only if the contract states what counts as a recognised reason to withdraw.
A financing clause therefore belongs in the draft before the price is discussed.
Why financing should already be in place by this point
Signing the CPCV means taking on a firm obligation — the buyer's own financing should ideally already be secured, or at least clearly on track, by this point, not something to start arranging afterwards.
A CPCV signed without a secured financing outlook carries a real risk of losing the deposit if the financing ultimately falls through.
The suspensive clause that protects your deposit
A CPCV does not have to be signed unconditionally — a cláusula suspensiva (suspensive clause) tied to mortgage approval lets the buyer withdraw and recover the deposit in full if financing is formally declined by the bank within an agreed deadline, instead of losing it under the standard forfeiture rule.
Not every seller accepts this clause, and it needs precise wording (bank, amount, deadline) to hold up — this is exactly the kind of clause we negotiate into the CPCV before it is signed, not after.
What happens if one side walks away
The CPCV binds, and the consequences are set by statute rather than by the contract: a buyer who withdraws forfeits the deposit paid, a seller who withdraws owes double it.
That applies whether or not the contract says so. A buyer who would rather have the property than the money can, where the CPCV has been executed before a notary and noted at the land registry, sue for performance instead. The second point concerns protection: a financing condition is not included automatically. Sign without one, and a later refusal by the lender costs the deposit — even where the refusal had nothing to do with the buyer's own conduct.
Financing in Portugal →
Non-residents can also buy and finance property in Portugal. The prerequisite is the tax number NIF, as with the NIE in Spain, and banks apply a lower loan-to-value.
Knowing the parallels and differences to Spain lets you decide between the two countries on a sound basis.
Contrato de arras →
The Contrato de arras is the Spanish reservation/preliminary contract. A deposit (arras) is paid on signing and generally forfeited if the buyer withdraws without a recognised reason.
A well-drafted arras contract protects the deposit if, against expectations, the financing is not approved.
Escritura →
The Escritura pública de compraventa is the notarial deed of sale in Spain. The notary reads out the key terms, verifies both parties' identity and confirms the agreed conditions.
Clarity about the escritura removes the worry of having to travel in person to the notary, since a representative can sign with a notarised power of attorney.
Frequently asked questions
What is CPCV in Portugal, and when does it become binding?
The CPCV is Portugal's preliminary property contract, and it binds both parties once it is signed, well before the notarial Escritura. Buyer and seller commit to the agreed terms, such as price, payment schedule and handover date. Signing usually triggers a deposit (sinal), so settle your financing before you sign.
What is a suspensive clause (cláusula suspensiva) in a CPCV?
A cláusula suspensiva tied to mortgage approval lets the buyer withdraw and recover the deposit in full if financing is formally declined by the bank within an agreed deadline. Not every seller accepts this clause, and it needs precise wording (bank, amount, deadline) to hold up.
Can a buyer sue for performance of the CPCV instead of taking the deposit?
Yes, where the CPCV has been executed before a notary and noted at the land registry, a buyer who would rather have the property than the money can sue for performance instead.
Related pages
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Contrato de Arras Deposit Spain — What It Commits You To
Contrato de arras: Spain's reservation contract with a deposit — forfeited if the buyer withdraws, often repaid double if the seller does.
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.