Buying property in Portugal: what the buyer should know before signing the promissory contract

When buying property in Portugal, the decisive moment is not the deed, it is the promissory contract of purchase and sale, known as the CPCV. This is where the deposit is paid, the deadlines are set and the risk is allocated. A well-executed deed does not cure a badly negotiated promissory contract.

Before signing. We review the land registry certificate, the tax registration record, any charges and mortgages, the planning status of the property and any debts to the condominium. Where there is bank financing, we align the contract deadlines with the bank's, so that the buyer does not lose the deposit because of a delay outside their control.

The deposit. If the seller defaults, the buyer is entitled to twice the deposit back. If the buyer defaults, they lose what they paid. The contract must therefore define precisely what counts as default, the deadlines for scheduling the deed and the conditions on which the purchase depends.

Additional safeguards. The promissory contract may be given real effect, enforceable against third parties, and a default may lead to specific performance, in which the court substitutes for the defaulting seller's signature. Where the property is handed over early, the buyer acquires a right of retention, but early handover also has tax consequences that should be planned for.

Form. A promissory contract for property must be in writing, with the signatures notarised in person. Failing to comply with these formalities may weaken the buyer's protection.

We act for buyers from the review of the property through to the deed and registration, in English, Portuguese or Spanish.