Deposit (caução)
The deposit is the amount — usually between 5% and 20% of the base value — required in order to bid, and forfeited if the winner does not complete the purchase.
What it is, why it matters when bidding, and a worked example.
The deposit works as a filter and as security: it filters out unserious bids and compensates the process if the winner fails to pay the balance. It is lodged before or at the moment of bidding, in whatever form the conditions of sale specify (transfer, certified cheque, bank guarantee), and is returned to everyone who does not win.
The percentage varies between cases and platforms, and is one of the first things to check in the notice: on a €150,000 property the difference between 5% and 20% is €22,500 of immediate liquidity you need available. It is not a cost — it is capital tied up for the duration of the auction.
For the winner, the deposit counts towards the price rather than adding to it. The common mistake is to budget a maximum bid while forgetting that the deposit must be available beforehand, and that the balance falls due within a short window that does not accommodate financing arranged in a hurry.
Example
A plot with a base value of €60,000 requires a 10% deposit — €6,000 — in order to bid. Three parties bid; the winner takes it at €71,000. The two losing bidders get their €6,000 back; the winner pays the €65,000 balance within the deadline, because their €6,000 already counts towards the price.
Frequently asked questions
Do I get the deposit back if I lose?
Yes. It is returned to every bidder who is not awarded the asset, on the terms and within the deadlines set out in each case's conditions of sale.
Do I lose the deposit if I win and don't pay?
Yes. Forfeiture of the deposit is the standard consequence of default, on top of possible liability for the shortfall in a later sale at a lower price.
Related terms
Go deeper
From registration to title: the steps to buy at auction without surprises.
Read the full guide