Deposit (caução)
The deposit is the security that goes with each bid in a sealed-bid sale: 5% of the announced value, by certified cheque or bank guarantee (CPC, art. 824(1)). It is forfeited if the accepted bidder fails to pay the price.
What it is, why it matters when bidding, and a worked example.
In a sealed-bid sale the law requires each bid to come with a deposit of 5% of the announced value, by certified cheque payable to the enforcement agent (or the court registry) or by a bank guarantee of the same amount (CPC, art. 824(1)). It is a filter and a security: it keeps out unserious bids and protects the case if the accepted bidder does not pay.
Once a bid is accepted, the bidder is notified to deposit the whole or the remaining price within 15 days (art. 824(2)). Failing that, the enforcement agent may declare the sale void and accept the next bid, and the bidder loses the deposit, among other consequences (art. 825). It is not a cost: it is capital tied up that counts towards the price.
The e-leilões electronic auction works differently: its rules (Despacho no. 12624/2015) do not provide for a deposit to bid. But a bid is irrevocable, and whoever wins above the minimum value must deposit the price, with the consequences of CPC art. 825. Private auction houses set their own conditions, so always check the conditions of sale of each case.
Example
A house goes to a sealed-bid sale with a base value of €100,000, so an announced value of €85,000 (CPC, art. 816). Each bid carries a €4,250 deposit (5% of €85,000). The winning bid of €95,000 is accepted; the bidder deposits the missing €90,750 within 15 days, because the deposit already counts towards the price.
Frequently asked questions
Do I get the deposit back if I lose?
The deposit secures the accepted bid. How it is returned to those who do not win is set out in each case's conditions of sale: check the notice or ask the enforcement agent.
Do I lose the deposit if I win and don't pay?
You can. If the price is not deposited, the enforcement agent may declare the sale void and accept the next bid, and the bidder loses the deposit (CPC, art. 825). On e-leilões, with no deposit, the consequences of the same article apply and may include the seizure of assets.
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