CPCV & Escritura in Lisbon: a practical guide
Quick definition
The CPCV (Promissory Purchase and Sale Contract) is a preliminary agreement that reserves the property and sets conditions. The deed (escritura) is the notarial act that officially transfers ownership. In Lisbon, these two steps are fundamental in any real estate transaction.
CPCV vs deed: key differences
The CPCV is a bilateral contract that obliges both parties to complete the sale under agreed conditions. It typically includes the price, payment method, deadline for the deed, and penalties for non-compliance. The deed, performed at a notary office in Lisbon, is when ownership actually changes hands and the new owner is registered at the Land Registry.
Typical purchase sequence in Lisbon
The typical process in Lisbon starts with negotiation and price agreement, followed by signing the CPCV with a deposit payment (usually 10-20% of the value). During the period until the deed, the buyer arranges financing and the seller prepares documentation. The deed takes place at a notary, with payment of the remaining amount and key handover. Finally, the property is registered at the Land Registry.
What to check before signing
Before signing the CPCV in Lisbon, verify: updated land certificate (confirms owner and any encumbrances), property tax booklet (fiscal description), usage license, energy certificate, and recent condominium minutes if applicable. On the deed day, confirm all CPCV conditions were met and that IMI and condominium payments are current.
Common pitfalls
The most frequent mistakes in Lisbon include: not checking encumbrances or mortgages on the property, ignoring licensing status (especially for properties with unlicensed works), underestimating time needed for bank loan approval, and not including adequate protection clauses in the CPCV. Another common error is not confirming if the seller actually has authority to sell.
Frequently Asked Questions
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