CPCV and sinal: the 10% deposit that bites both ways
A buyer asked in a group what looked like a beginner question: "If I put an offer on a property, is it reserved? Is the deposit refundable?" It is not a beginner question at all — in Portugal the CPCV is much heavier than the equivalents most foreigners know from home, and the answers to those two questions have real financial teeth.
How the deal actually flows
The usual path is: reservation (often a small fee) → CPCV (the promissory contract) with a deposit called the sinal → escritura (the deed). Each stage is a genuine commitment, and the CPCV in particular is where the money becomes exposed.
Sinal: typically 10% at CPCV signing, sometimes 10–20%.
Buyer walks away: you generally lose the sinal outright.
Seller walks away: they owe you double the sinal back.
Realistic timeline: ~6–10 weeks offer-to-keys without a mortgage, longer with one.
Why due diligence comes first
- Once you sign the CPCV, the penalties are real and symmetrical. So the checks — title, debts, charges and licensing (caderneta predial, registo predial, licença de utilização) — must happen before the CPCV, not after it.
- If short-term rental is part of your plan, verify the AL licence situation for that exact address and freguesia before you commit, because some zones are restricted.
- Always get the terms in writing. Verbal reassurances from a seller do not survive a dispute, and the sinal rules only protect you if the contract is clear.
- Having a lawyer run the diligence, not just an agent, is the difference between a clean purchase and an expensive surprise after signature.
What makes the CPCV feel unfamiliar to foreign buyers is how much weight it carries this early. In many countries the equivalent of an offer is soft and walkable; here, signing the promissory contract and handing over the sinal is a serious, binding step with symmetrical penalties on both sides. That is actually a feature — it protects a buyer from a seller who gets a better offer next week — but only if you have done your homework before you sign, so that you are the party who does not need to walk away.
The practical order, then, is: agree the deal, then have a lawyer run full diligence on title, debts, charges and licensing, and only once that comes back clean do you sign the CPCV and pay the sinal. Reverse those steps and you have committed real money to a property whose problems you have not yet checked for. The whole point of Portuguese buying is front-loaded caution, and the sinal is exactly why.
The mechanics are in what CPCV and sinal are. Because the transfer tax lands around here too, read IMT for non-residents, and total the closing costs on the cost calculator before you commit a deposit.
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Guidance, not legal or tax advice — verify your case with official sources.