Real Estate Mediation Agreement (CMI)

What Is It?

The Real Estate Mediation Agreement (Contrato de Mediação Imobiliária, or CMI) is the legal contract signed between a property owner and a licensed real estate agency.

This document formally authorises the agency to market the property and search for potential buyers.

What Is It For / Why Is It Important?

Legal Requirement
In Portugal, an agency cannot legally advertise or promote a property without a signed CMI.

Rule Definition
The agreement establishes key terms such as the asking price, contract duration, and commission payment conditions.

Protection for Both Parties
It defines the rights and obligations of both owner and agency — protecting the seller from improper charges and ensuring the agency is compensated if a sale is successfully completed.

Types of Agreement

Exclusive Agreement (Exclusividade)
Only the appointed agency is authorised to sell the property.
Even if the owner independently finds a buyer (for example, a friend or acquaintance), the agreed commission remains payable.

Non-Exclusive / Open Agreement (Regime Aberto)
The owner may appoint multiple agencies simultaneously.
Commission is paid only to the agency that secures the final buyer.

What Is the Cost (Commission)?

Amount
There is no legally fixed rate, but the Portuguese market commonly applies a commission of 5% of the sale price plus VAT — IVA (Imposto sobre o Valor Acrescentado).

When Is It Paid?
Only upon successful completion of the transaction — typically:

• part at the Promissory Contract (CPCV — Contrato-Promessa de Compra e Venda), and

• the remainder at the Final Deed (Escritura).

If the property is not sold, no commission is payable.

Mandatory Contract Elements

The agreement must include:

• Agency identification and AMI licence number (Licença AMI)

• Identification of the property and owners

• Agreed asking price

• Commission amount (percentage or fixed value)

• Contract duration (commonly 6 months, renewable)

• Type of regime (exclusive or non-exclusive)

Validity and Termination

Duration
Typically valid for 6 months, often with automatic renewal clauses.

Termination
The contract may be cancelled by sending a registered letter with acknowledgement of receipt (carta registada com aviso de receção), respecting the contractual notice period — usually 10 to 30 days before expiry or renewal.

Important Note on Exclusivity

Before signing, confirm whether the agreement grants exclusivity.

Exclusive agreements often result in greater marketing investment and commitment from the agency, but they remove the owner’s ability to sell privately without paying the agreed commission.