Should I sign the promissory contract (CPCV) before my mortgage is approved?

What is at stake: your deposit

In Portugal, the promissory contract (CPCV) is signed before the deed. The buyer usually pays a deposit, called sinal, which is part of the price paid in advance. It is often between 10% and 20% of the price. When you buy with a mortgage, the deposit is usually the part the bank does not lend.

By law, money paid on the CPCV is treated as a deposit. If the buyer does not go ahead, they lose it. If the seller does not go ahead, they pay back double (articles 441 and 442 of the Portuguese Civil Code).

A refusal from the bank is not, on its own, an excuse towards the seller. Only the contract can protect you.

The clause that protects your deposit

The clause makes the purchase depend on the mortgage being approved by a set date. If the bank does not approve it in time, the contract ends and the deposit is returned. To really protect you, it should state:

• The minimum loan amount, not just “mortgage approval”. If the bank approves less, for example because the valuation came in below the price, it is clear what happens.
• The deadline for approval.
• How you prove the refusal, for example with a letter from the bank.
• When and how the deposit is returned.

The clause is agreed with the seller and written by a lawyer or solicitor.

Pre-approval first, then the CPCV

With pre-approval, you know how much the bank will lend before you pay the deposit. Sellers also accept the clause more easily when they see the loan has already been checked. See Can I get my mortgage pre-approved before I choose a home?

Realistic timing to completion

In our experience, it usually takes 45 to 60 days from handing in your documents to completion, and some cases take longer. Every case is different and much depends on the documents. This includes the valuation, the property documents and the minimum 7 days to think after approval. See How long does the whole process usually take?

Set a completion date in the CPCV with some margin, and allow an extension when the delay is not the buyer's fault, for example the seller's documents or cancelling the seller's mortgage.

Formal points

• For a home, the signatures on the CPCV must be certified in person, and the usage or building licence must be confirmed (article 410(3) of the Portuguese Civil Code).
• Check the property documents before you sign: land registry certificate, caderneta predial and usage licence.
• Do not pay a deposit bigger than your own savings. The rest of the price depends on the loan.

Where FINOVA helps

We handle your pre-approval with the banks we work with and plan the CPCV dates with you, so the mortgage is ready in time for completion. The legal wording of the contract is for your lawyer or solicitor. Our fee is paid by the bank.

Sources

• Portuguese Civil Code, articles 410, 441 and 442 (in Portuguese)
• Banco de Portugal — Home loans: how to take one out (in Portuguese)

Sources checked on 23 October 2026. This guide is not legal advice.