The Contrato Promessa de Compra e Venda, usually shortened to CPCV, is the promissory contract signed in Portugal after the offer is accepted and before the final deed of sale. It is the document that legally commits both buyer and seller to the transaction.
The CPCV typically covers more ground than buyers expect, and the clauses inside it shape what happens if either side needs to delay, renegotiate, or withdraw.
Here is what to check in a CPCV before signing for an Algarve property in 2026.
What the CPCV Actually Does
The CPCV does several things at once. It sets out the agreed price, the deposit being paid, the deadline for the final deed (escritura), the conditions that must be met before completion, and the remedies if either side fails to perform.
It is not a final deed of sale. Title does not pass at the CPCV stage. But it is binding under Portuguese civil law, and the financial penalties for default are real.
The Deposit and Where It Goes
The deposit at CPCV stage typically sits between 10% and 30% of the purchase price. The CPCV should clearly state:
• The exact amount being paid
• The bank account the deposit is being transferred to
• Whether the deposit is held by the seller, by an intermediary, or in escrow • The currency and exchange rate basis if the buyer is paying from outside the eurozone
Most Algarve transactions in 2026 transfer the deposit directly to the seller’s account, which is standard practice but a meaningful exposure if the seller defaults. Buyers paying larger deposits sometimes negotiate for the funds to be held by their own lawyer until completion, particularly where the seller is a developer or where there is a long gap to the final deed.
Penalty Clauses for Default
Portuguese law provides default remedies if either side fails to complete:
• If the buyer defaults, the seller keeps the deposit
• If the seller defaults, the seller pays the buyer double the deposit
These default remedies apply unless the CPCV specifies otherwise. Some CPCVs in 2026, particularly developer contracts on new-build properties, modify these remedies, capping the seller’s exposure or limiting the buyer’s options. Read the relevant clauses carefully.
It is also worth confirming the CPCV provides for specific performance, in addition to the financial remedies. Specific performance allows either party to compel the transaction through the courts if the other side refuses to complete. Where this is missing or restricted, the practical leverage of the contract changes.
Conditions Precedent
Conditions precedent are events that must occur before either side is bound to complete. Common ones to look for in Algarve transactions:
• Outstanding regularisations or licences for the property
• Removal of any liens, mortgages, or charges held by the current owner
• Evidence of paid IMI, condominium fees, and utility bills up to the date of completion
Where the property has incomplete licensing (an unlicensed extension, an undeclared swimming pool, an annexe not on the registered footprint), the CPCV should make completion conditional on resolution. Without this, the buyer inherits the irregularity.
The Timeline to Deed
The CPCV sets out the deadline for the escritura. Typical Algarve timelines in 2026:
• 30 to 60 days for cash buyers
• 60 to 120 days where a Portuguese mortgage is involved
Be cautious about CPCVs that allow the seller to extend the deadline unilaterally or that provide for automatic extensions. These can leave a buyer’s funds tied up while the seller works through issues that should have been resolved before signing.
Property Condition and Warranties
Most CPCVs include warranties from the seller about the state of the property, the absence of legal disputes, and the accuracy of the registered information. Common warranties to confirm:
• The property is free of tenants or other occupants on the date of completion • All declared utilities and services are working as described
• The registered area matches the actual built area
• There are no pending legal or planning actions affecting the property
The CPCV may also specify that any furniture, appliances, or fittings included in the sale must remain at the property at completion. Where furnishings are part of the deal, an inventory should be attached as a schedule.
Common Mistakes
Recurring CPCV mistakes in Algarve transactions in 2026:
• Signing before a lawyer has reviewed the property’s land registry and tax records • Accepting a CPCV translation that varies in substance from the Portuguese version • Failing to attach a clear schedule of fixtures, fittings, and inventory
• Treating the CPCV as a formality and reviewing it under time pressure on the day of signing
• Approaching the CPCV with no room for negotiation, where the original offer terms simply roll forward into the contract without challenge
Most of these are avoidable with adequate time and proper review. The CPCV is rarely the right document to rush through, particularly where the deposit being paid is meaningful.
Summary
The CPCV determines what happens if the transaction encounters difficulty. The clauses inside it shape leverage, exposure, and timelines for both sides, and a proper legal review before signing protects buyers from outcomes they cannot easily reverse later. The right Portuguese lawyer is the person who carries out that review, and engaging one early in the purchase, before the CPCV is drafted, is one of the most useful steps a buyer can take.
If you are looking at properties in Lagos or the wider western Algarve and would like help finding the right purchase, including referrals to the lawyers we work with regularly, please get in touch.
