Reservation Deposit (Sinal de Reserva)

What Is It?

A Reservation Deposit (Sinal de Reserva) is a relatively small amount paid by a potential buyer to the seller or real estate agency to temporarily remove a property from the market — typically for 7 to 15 days — while preparing the Promissory Contract (CPCV — Contrato-Promessa de Compra e Venda).

What Is It For / Why Is It Important?

Priority Access
The seller agrees not to show or negotiate the property with other buyers during the agreed reservation period.

Proof of Serious Intent
Demonstrates that the buyer has genuine purchase intent rather than casual interest.

Preparation Period
Allows time to review legal documentation (certificates, tax records, ownership documents) before committing to a larger deposit under the CPCV.

How Is It Formalised?

A Reservation Agreement (Documento de Reserva) should always be signed, clearly stating:

• reservation amount paid,

• reservation period,

• agreed purchase price,

• conditions under which the amount is refundable.

The process is usually handled through a real estate agency acting as stakeholder (fiel depositário), temporarily holding the funds.

Typical Amount

There is no fixed legal rule, but reservation deposits commonly range between €1,000 and €5,000.

This amount is normally deducted later from:

• the purchase price, or

• the CPCV deposit (sinal).

What Happens If the Deal Falls Through?

This depends entirely on the signed reservation terms:

Buyer Withdrawal
If the buyer withdraws without contractual justification, the reservation amount is typically forfeited.

Seller Withdrawal
If the seller withdraws, the amount is usually refunded in full (unless otherwise agreed).

Mortgage Refusal
If the agreement states that the reservation depends on mortgage approval and financing is denied, the amount should be fully refunded.

Important Warning

A reservation agreement does not carry the same legal protection as a CPCV under Article 442.º of the Portuguese Civil Code.

If the seller receives a significantly higher offer, they may simply return the reservation amount and proceed with another buyer.

In practice, the reservation secures time — the real legal commitment only begins with the CPCV.