Promissory Purchase Agreement (CPCV)

What Is It?

The CPCV (Contrato-Promessa de Compra e Venda) is a written contract between buyer and seller in which both parties legally commit to completing the property sale through the final deed (Escritura) within an agreed timeframe.

It is the stage that effectively locks the deal before the final transfer of ownership.

What Is It For / Why Is It Important?

Legal Commitment
Defines the agreed sale price, completion date, and all conditions of the transaction.

Deposit (Sinal)
Formalises payment of an upfront amount that serves as a financial guarantee of commitment.

Protection Against Withdrawal
Creates automatic financial consequences if either party withdraws without legal justification.

How Is It Prepared?

Lawyer or Solicitor (Advogado / Solicitador)
The safest approach, ensuring clauses properly protect both parties.

Real Estate Agency
When mediated by an agency, a standard contract template is often provided.

Signature Certification
For the agreement to allow specific performance (Execução Específica) — meaning a court may force completion of the sale — signatures should be formally certified in person or by a lawyer or solicitor.

What Does It Cost?

Contract Drafting
Legal fees typically range between €250 and €600, depending on complexity.

Deposit (Sinal)
Usually 10% to 20% of the purchase price, paid by the buyer upon signing.

What Happens If Someone Withdraws?

Buyer Defaults
The buyer generally forfeits the full deposit paid.

Seller Defaults
The seller must return the deposit in double.
Example: €20,000 deposit → €40,000 returned to the buyer.

Crucial Tip: Mortgage Protection Clause

If financing is required, the contract should include a Mortgage Approval Condition (Cláusula de Salvaguarda de Crédito).

This clause states that if mortgage financing is refused by the bank, the agreement is cancelled and the deposit must be refunded in full to the buyer.