CPCV — Portugal Preliminary Contract
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.
How the CPCV differs from a plain reservation
A non-binding reservation agreement typically secures only a short window without a genuine purchase obligation — the CPCV, by contrast, is a fully binding contract: buyer and seller both commit to the agreed terms (price, payment schedule, handover date). Withdrawing afterwards is only possible under conditions set out in the contract itself, usually with financial consequences for the party pulling out.
The financial commitments that typically come with it
Signing the CPCV usually triggers a deposit (sinal). If the buyer later withdraws without a contractually recognised reason, this deposit is generally forfeited in full to the seller. If the seller withdraws instead, they typically have to repay double the deposit received to the buyer — a real financial consequence on both sides that underlines just how binding this contract is.
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.
Related glossary terms
Financing in Portugal
Non-residents can also buy and finance property in Portugal. The prerequisite is the NIF tax number; the financing amount is – as in Spain – lower than for residents. The main purchase taxes are IMT (transfer tax) and Imposto do Selo (stamp duty), with IMI as the ongoing tax.
Contrato de arras
The Contrato de arras is the Spanish reservation/preliminary contract. A deposit (arras) is usual; if the buyer withdraws they normally lose it, if the seller withdraws they often repay it twice over.
Escritura
The Escritura pública de compraventa is the notarial deed of sale in Spain. On signing before the notary, ownership passes; it is then registered in the land registry.
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