Reservation & Offer
Offers, reservation documents and reservation payments explained.
Overview
Offers, reservation documents and reservation payments explained.
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How do offers and reservations work in Portugal?
An offer is normally made through the estate agent and, once accepted, is often followed by a reservation document and a reservation payment that takes the property off the market for a defined period. A reservation document may create binding obligations; its legal effect depends on its terms. What it says about refunds, deadlines and the conditions for proceeding determines whether the money is recoverable if the transaction does not go ahead.
Key points
- A reservation document may create binding obligations; its legal effect depends on its terms.
- Establish in writing who holds the payment and when it is refundable.
- Set the reservation period long enough for proper due diligence.
- Take independent advice before signing or transferring any funds.
Making an offer
Offers are usually presented in writing to the estate agent instructed by the seller. Beyond price, the terms that matter most in practice are the completion timetable, what is included in the sale, and whether the offer is conditional on financing or on the outcome of legal checks.
Remember that the agent is normally instructed and paid by the seller. Independent legal review protects your position before any document is signed or any payment is made.
Reservation agreements and payments
A reservation agreement typically records the agreed price, the reservation period, the amount paid and what happens to it. The amount is usually credited against the price if the purchase proceeds.
Reservation documents vary widely in their drafting and legal effect, and the consequences depend on the wording actually agreed. Some make the payment refundable where legal checks reveal a defect; others treat it as non-refundable in almost all circumstances, or allow the seller to keep it if the buyer does not sign a promissory contract by a fixed date. Payment, refundability, exclusivity, deadlines and conditions should be understood before signing or paying.
Check before you sign
- Who receives the money — Whether it is held by the agent, the seller or a third party, and on what terms.
- Refund conditions — The precise circumstances in which the payment is returned.
- The reservation period — How long the property is withdrawn from the market and what must happen within it.
- What is being reserved — The exact property, parking spaces, storage and any items included.
Good to know
A reservation payment is often the first money a buyer commits. Have the document reviewed before transferring funds, not afterwards.
New build and off-plan reservations
Developer reservation forms are normally prepared by or for the developer and should be assessed on their specific terms. They may refer to plans, specifications and completion estimates that are only meaningful once the underlying documentation is reviewed.
Pay particular attention to how the specification can be varied, what the estimated completion date commits the developer to, how instalments are structured and what protection exists for sums paid before the building is finished.
From reservation to contract
The reservation period should be used for legal and technical due diligence, and to prepare the promissory purchase agreement where one is to be signed. Agree the length of the period with that work in mind rather than accepting a default term.
Where this fits in the buying process
This guide expands on the "Make an offer or reservation" stage of the full buying process. Read it alongside the complete step-by-step guide to see what comes before and after.
Frequently asked questions
Deposits are agreed between the parties and vary. The amount, how it is held and what happens to it if the purchase does not complete are contractual matters set out in the promissory agreement.
Next steps
This guide provides general information about buying property in Portugal and does not replace legal advice on a specific transaction.