Notes for international buyers
Buying in Portugal? The Promissory Contract Is Not Just a Formality
Once you find your dream home in the Algarve, the next step is usually the CPCV (Contrato Promessa de Compra e Venda). While it translates to "Promissory Contract," do not mistake it for a simple reservation. It is legally binding.
THE DEPOSIT ("SINAL"): At this stage, you will typically pay a deposit, usually between 10% and 20% of the property price.
THE GOLDEN RULE OF PORTUGUESE LAW:
- If you (the buyer) pull out: You lose your deposit entirely.
- If the seller pulls out: They must pay you back double the amount of your deposit.
THE DANGER: Many buyers feel pressured to sign the CPCV quickly to "secure the deal." However, if your bank loan is not yet approved or if the house has legal issues, you could be contractually forced to buy or lose thousands of Euros.
THE SOLUTION: Never sign a CPCV without a lawyer reviewing the specific clauses. We can add "safeguard clauses" (e.g., making the deal subject to mortgage approval) to protect your money.
Written on the date shown. The law and tax figures may have changed since. This article is general information, not advice on your particular case. For questions: info@pedrotabuada.com · +351 923 337 076.