Step 2 - Promissory contract In order to secure the deal, it is advisable and usual in Portugal to sign a promissory contract "contrato promessa de compra e venda", whereby all conditions for the sale agreed with the vendor will be stated including completion date. A deposit is payable at the signature of the said contract and its amount subject to agreement between the parties. This promissory contract is also signed by both the vendor and the buyer and an agreed deposit is paid by the buyer to the vendor (normally 10% of the value of the property). This contract safeguards both parties; should the vendor not complete the sale, he is required by law to repay twice the amount of the deposit to the buyer. Should the buyer not complete the purchase, the vendor is entitled to retain the deposit paid.


Q But what happens if the vendor sells to someone else and takes off with your deposit? What if he 'disappears'?