During the process of buying property in Portugal, there is one term almost every buyer will encounter — CPCV.

Whether purchasing through an agent or signing directly with a developer, this document appears once the transaction moves into a formal stage. However, many first-time buyers in Portugal are not entirely clear about its legal significance.

This article explains what CPCV is, its legal effect, and the key issues buyers should understand before signing.

What Is CPCV?

CPCV stands for Contrato de Promessa de Compra e Venda, which translates to Promissory Purchase and Sale Agreement.

It is not the final deed of transfer. Instead, it is a binding agreement signed before the official transfer of ownership (Escritura). In simple terms, it functions as a legally enforceable preliminary contract that secures the transaction before completion.

Once both parties sign the CPCV, they formally commit to completing the sale. The contract becomes legally binding, and any breach may result in clear legal consequences.

What Does a CPCV Typically Include?

A standard CPCV generally specifies the following key elements:

Property details: address, size, land or property registration number, and related identification data.

Identification of the buyer and seller: including legal identification documents and tax numbers.

Total purchase price and payment structure: including payment schedule and designated bank accounts.

Deposit clause (the most critical component): typically, the buyer pays approximately 10% of the purchase price upon signing the CPCV.

Portuguese law provides clear rules regarding the deposit: If the buyer defaults, the deposit is forfeited. If the seller defaults, the seller must return double the deposit. For this reason, the deposit serves not only as part of the purchase price but also as a legal guarantee mechanism.

The CPCV also defines the date and location of the final deed signing (Escritura), whether the property will be delivered with furniture, appliances, or other included items and the condition of the property at handover.

In most cases, the final transfer takes place within 30 to 60 days after signing the CPCV, depending on financing arrangements and the parties’ agreement.

Why Caution Is Essential Before Signing？

The CPCV is not a simple procedural form — it is a legally binding contract.

Once signed and the deposit is paid, the agreement becomes effective, and both parties assume legal obligations. It cannot be unilaterally canceled without consequences.

Therefore, before signing a CPCV, it is strongly recommended to have the contract reviewed by a qualified lawyer, verify the property’s legal status and ownership records, and ensure that financing arrangements are secure and realistic. Careful review at this stage is critical to avoiding potential legal or financial risks later in the transaction.

In the Portuguese property transaction process, the CPCV acts as the legal bridge between an initial agreement and the final transfer of ownership. It represents both commitment and protection. It secures the transaction — but also carries enforceable obligations. Understanding the legal implications of the CPCV is essential knowledge for anyone purchasing property in Portugal.

We will continue to publish practical insights on Portuguese real estate to help investors and homebuyers better understand the process and complete transactions with clarity and confidence.