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Seller — Promissory Contract (CPCV)

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5. CPCV — Contractual Commitment When Selling Property in Portugal

The Moment the Sale Becomes Legally Secured

Once an offer is accepted, the transaction enters a decisive phase: formalising the legal commitment between buyer and seller.

The CPCV (Promissory Purchase and Sale Agreement) converts a verbal agreement into a legally binding contract.

From this point forward, both parties assume defined legal obligations leading up to completion.

The property effectively leaves the market.

What Happens at This Stage

During this phase, the sale agreement is formally structured.

This typically includes:

  • drafting and reviewing the CPCV;

  • confirming the final agreed price;

  • payment of the deposit by the buyer;

  • establishing the completion timeline;

  • inclusion of contractual conditions;

  • defining the buyer’s financing period;

  • formally removing the property from the market.

At this stage, the transaction moves from negotiation to legal commitment.

Why This Matters

A properly structured CPCV protects both seller and buyer.

Without a well-prepared agreement, risks may include:

  • withdrawals without consequences;

  • indefinite delays;

  • disputes regarding deadlines;

  • financial exposure for either party.

For the seller, the deposit represents tangible proof of the buyer’s commitment.

Clara and Rui’s Story

After accepting an offer, Clara and Rui assumed the sale was practically complete.

They soon realised there was still a critical period before final completion.

With TeamQASA’s support, the CPCV was prepared with clearly defined timelines and a financing contingency linked to the buyer’s mortgage approval.

The deposit was paid upon signing, securing genuine financial commitment.

From that point onward, the transaction progressed predictably toward completion.

Documents & Definitions

CPCV — Promissory Purchase and Sale Agreement
Legal contract binding buyer and seller to complete the sale within an agreed timeframe and under defined conditions.

Deposit (Sinal)
Amount paid by the buyer upon signing the CPCV as financial security for fulfilling the agreement.

Conditional Clause (Cláusula Resolutiva)
Contractual provision allowing termination without penalty if a specified condition — commonly mortgage approval — is not met.

Completion Deadline
Agreed timeframe within which the transaction must proceed to final deed signing and ownership transfer.

Common Mistakes

  • accepting contract drafts without proper review;

  • setting unrealistic financing deadlines;

  • removing the property from the market before CPCV signature;

  • misunderstanding legal consequences of breach;

  • assuming the sale is finalized once the deposit is received.

Did You Know?

If the buyer withdraws after signing the CPCV without legal justification, the deposit is typically forfeited.

If the seller withdraws, they are generally required to return the deposit in double.

This is the stage where the commitment becomes real.