There is a single stage in a Portuguese purchase where the buyer is most exposed. Not the offer, which commits nothing. Not the deed, by which point the work is done. It is the promissory contract: the moment a buyer has found a property, agreed a price, and is asked to sign something legally binding and hand over a substantial deposit.
What the CPCV is
The Contrato de Promessa de Compra e Venda is a contract in which both sides promise to complete the sale on agreed terms. It is not a reservation or a letter of intent. It is enforceable. Once signed, neither party can simply walk away without consequence.
For most foreign buyers it is the first genuinely binding step in the process, and it usually arrives faster than expected, often within days of a price being agreed.
What the contract must contain
A properly drafted CPCV fixes the essential terms: the parties, the precise identification of the property, the agreed price, the deposit, the completion date, and any conditions that must be met before the deed. Those conditions matter. A mortgage approval, a remediation of a registry defect, or the regularisation of a licence can all be written in as conditions precedent, so that if they fail, the buyer is protected.
It should also confirm what is being sold. The boundaries, the registered area, the inclusions. Vague identification at this stage becomes a dispute later.
What happens if either party withdraws
The deposit is the mechanism that gives the contract its weight. If the buyer withdraws without a contractual reason, the deposit is forfeited to the seller. If the seller withdraws, the established remedy is to return double the deposit to the buyer.
This symmetry is the point. The deposit is not a fee; it is the price of breaking the promise, and it runs both ways. A buyer who understands that reads the deposit figure differently before agreeing to it.
What to verify before you sign
Everything that determines whether the property is safe to buy should be confirmed before the CPCV, because the contract's protective power depends on what you knew when you signed it.
Title comes first: the certidão de teor from the Land Registry, confirming who owns the property and what charges, mortgages, or liens sit against it. Then planning: the property must be checked against the Plano Diretor Municipal, which governs what can be built or modified, and verification means checking the specific municipal plan for the relevant council. Then licences and permits, confirming the building and any extensions were lawfully authorised, the same ground covered in our guide to avoiding illegal property.
The full sequence, from these checks through to the notarial deed, is set out in our guide to buying property in Madeira safely.
Why the moment before signing matters most
Independent advice is worth most in the days before a CPCV is signed, not after. Before signature, a problem is leverage or a reason to walk. After signature, the same problem is a loss, measured in the deposit and the cost of the property itself once the wider acquisition costs are counted.
We do not tell clients whether to sign. That is their decision, made on their counsel's advice. Our role is to ensure that when the moment comes, every check that should have been done has been done, and the contract in front of them reflects it. A CPCV should always be reviewed by an independent Portuguese lawyer before signature.
Approaching a CPCV in Madeira?
Begin a private conversationThis article is general information, not legal, tax, or financial advice. Details are stated as at 2026 and subject to change, and individual circumstances vary. Engage qualified Portuguese professionals before acting.