Reservation fees + IBAN safety - the Madeira buyer's defence playbook

1. Understand what a reservation fee actually is

A reservation fee (“sinal de reserva” or “taxa de reserva”) is a non-statutory, agency-practice instrument. It takes the property off the market for a defined window (usually 14–30 days) while the buyer completes due diligence and prepares for a CPCV. It is not the same as a CPCV sinal (the 10–20% deposit paid at promissory-contract signing, which is statutorily regulated under Portuguese civil code).

Because there is no statutory framework, the reservation fee lives or dies on what is written in the reservation agreement. No written agreement → no claim.

2. Never pay a reservation fee without a written reservation agreement

The written agreement must specify at minimum:

• The exact property being reserved (address, matriz number, article number, parish).
• The amount being paid and the IBAN receiving it.
• The reservation period (start and end dates).
• The conditions under which the reservation fee is refunded.
• The conditions under which the reservation fee is credited toward the CPCV sinal.
• The conditions under which the fee is forfeited.
• Governing law (Portuguese) and jurisdiction (Madeira regional courts).

3. Cross-check the IBAN

The single most common attack is a fake or intercepted IBAN. Before you transfer:

• Verify the IBAN belongs to the seller or the agency's registered company - not a personal account with no documented relationship to the transaction.
• Call the agency's main office line (not the agent's personal mobile) to confirm the IBAN.
• Ask your property lawyer to confirm the IBAN belongs to the entity you are transacting with. Portuguese lawyers can pull the registered bank details of a business.
• Use a bank transfer with a clear reference citing the property and the reservation agreement - never crypto, never cash, never a personal PayPal.

4. Verify the agency's AMI licence

Portuguese real-estate brokers must hold an AMI licence issued by IMPIC. Check it on the IMPIC portal. An agency without a current AMI licence cannot lawfully intermediate a property sale in Portugal.

• AMI licence number must be visible on the agency's invoices and website.
• If the agent is an individual operating outside an AMI-licensed company, walk away - this is increasingly a pattern in Madeira.

5. What to do if a reservation fee is not returned

Escalation ladder:

1. Formal demand letter from your lawyer, citing the reservation agreement and the breach. 10-day deadline.
2. Complaint to IMPIC - the sector regulator can suspend AMI licences. This is often enough to force a return.
3. Mediation via the Ordem dos Advogados - if the agency's own lawyer is involved.
4. Civil action in the Madeira regional courts. Expect 12–24 months for resolution on a small-claim reservation-fee dispute.

Community anecdote (Expat.com Madeira forum): most recorded returns happen at stage 1 - agencies fold under a formal demand letter from a Portuguese advogado on letterhead. Doing this yourself by email rarely works.

6. Better: skip the reservation fee entirely

If the agency is willing, go straight to CPCV with a 5% sinal - much safer legally. Many agencies offer this; many do not. The agency that refuses to negotiate the reservation-fee structure is also the agency that is most likely to disappear with your money.