Reservation agreements in Portugal: what the buyer should settle before paying

Reservation is an early contract decision

A reservation agreement can give the buyer time and take a property off the market. It can also expose money before the buyer has reviewed the property file, secured financing or negotiated the CPCV.

Treat the document as a real contract, even if it is short or described as a formality.

Identify every party

Confirm the buyer, seller, agent and recipient of the reservation amount. If the agent receives the money, understand in what capacity and when it is transferred to the seller.

The legal seller should be identified or the agreement should explain why another entity is contracting.

Describe the property and reservation period

Identify the unit, parking, storage, project or land with enough precision to avoid confusion. State when the reservation begins and ends and what the seller or agent must do during that period.

“Off the market” should have a practical meaning. Clarify whether viewings, offers or parallel negotiations are allowed.

State the amount and payment route

Record the sum, currency, due date and account. Verify the recipient through a second channel and keep the bank receipt.

The agreement should say whether the amount is held, transferred, credited toward the CPCV deposit or treated in another way.

Define refund events

Avoid a general label such as non-refundable without analysing the exceptions. The buyer may need a refund if:

• the seller cannot prove ownership or authority;
• material due-diligence issues arise;
• agreed documents are not delivered;
• mortgage financing is refused or insufficient;
• the parties cannot agree the CPCV;
• the seller withdraws or accepts another offer;
• the property differs materially from what was presented.

Each event should have an evidence and repayment mechanism.

Connect reservation to due diligence

Set a seller document deadline that gives the buyer enough time to review the file before the reservation expires.

The buyer should not lose the fee because the seller delivered essential records too late for meaningful review.

Coordinate financing

If the purchase depends on a mortgage, state what level of approval is required and what happens if the bank valuation or final loan amount is insufficient.

An early bank indication should not be treated as final approval.

Set a realistic CPCV timetable

The reservation should state when a draft CPCV will be delivered, how long the buyer has to review it and when signature is expected.

Avoid a deadline that forces the buyer to choose between losing the reservation fee and signing an unreviewed contract.

Address seller withdrawal and exclusivity

State the consequence if the seller refuses to proceed, changes the price or sells to another buyer during the reservation period.

A refund alone may not compensate the buyer for legal, survey or financing costs, but any additional protection must be negotiated expressly.

Avoid accidental acceptance of future terms

The reservation should not bind the buyer to a future CPCV that has not been seen. Be careful with wording that says the buyer accepts the seller's standard contract or all project documents in advance.

Check the transition of funds

When the CPCV is signed, confirm how the reservation amount is credited and how the receipt is documented. The contract should not create uncertainty about whether the buyer has paid two separate deposits.

Red flags

Pause if the recipient changes at the last moment, refund wording is absent, the seller identity is unclear, documents are withheld until payment or the buyer is told that legal review will delay the deal.

Reservation Agreement Review is appropriate before the first transfer. The buyer should pay for a defined reservation right, not for pressure to enter the next contract without evidence.