Legal Disclosures

1. Entity Identification

The operator of covest.mx is Covest Proptech, S.A. de C.V., a company incorporated and existing under the laws of the United Mexican States, with its principal domicile in Mexico.

For any inquiries related to these disclosures or our operations, you may contact us at: info@covest.mx.

2. Nature of Services

Covest Proptech, S.A. de C.V. operates covest.mx as a digital coordination platform (proptech company) that facilitates fractional real estate ownership in Mexico through the Fideicomiso bank trust structure. Covest is NOT a bank, financial institution, securities broker, investment fund, or financial intermediary of any kind.

Covest coordinates the following services on behalf of investors:

• Fideicomiso structuring: coordinating the establishment and administration of bank trusts with Banco Covalto as institutional fiduciary trustee.
• Property management coordination: facilitating property maintenance, rental operations, and reporting through qualified third-party service providers.
• Investor relations: providing a digital platform for documentation, financial reporting, and communication between co-owners and service providers.
• Digital process facilitation: enabling remote identity verification, electronic signatures, digital notarization, and public registry filing through Covalto’s banking infrastructure.

Covest does NOT hold investor funds, custody assets, own properties, guarantee investment returns, or provide financial, legal, or tax advice. All investor capital flows exclusively through Banco Covalto’s CNBV-regulated banking infrastructure — never through Covest.

3. No Custody of Funds or Assets

Covest Proptech, S.A. de C.V. never takes possession, custody, or control of investor funds at any stage of the investment process. All financial transactions — including capital contributions, rental distributions, and trust disbursements — flow exclusively through Banco Covalto, S.A., Institución de Banca Múltiple, acting as the CNBV-regulated fiduciary trustee of each Fideicomiso.

Trust assets, including real property and financial reserves, are safeguarded by Banco Covalto as trustee under the terms of each individual trust agreement. Covest has no legal claim, ownership interest, or custodial authority over any trust property.

Covest coordinates the ownership ecosystem; Banco Covalto safeguards the assets.

4. Independence from Banco Covalto

Banco Covalto, S.A., Institución de Banca Múltiple (“Covalto”) acts solely in its capacity as institutional fiduciary trustee of each Fideicomiso (bank trust) through which fractional ownership interests are held. Covalto’s role is limited to trust administration under the terms of each individual trust agreement.

Covalto does NOT endorse, sponsor, promote, or guarantee Covest, covest.mx, or any investment products or returns offered by Covest. Covest Proptech, S.A. de C.V. and Banco Covalto, S.A. are independent legal entities with separate management, ownership, and legal responsibility.

Investors should not interpret Covalto’s role as fiduciary trustee as an indication of Covalto’s approval of, or responsibility for, any investment made through Covest’s platform.

5. Platform Continuity and Ownership Independence

Your beneficial ownership interest in each Fideicomiso is recorded in Mexico’s Public Registry of Property (Registro Público de la Propiedad) — a sovereign government record that exists independently of Covest, its platform, or any digital infrastructure.

The Fideicomiso is a binding legal contract between the investor (as beneficiary) and Banco Covalto (as fiduciary trustee). The existence and enforceability of each trust does not depend on Covest’s continued operation as a company or platform.

In the event that Covest Proptech, S.A. de C.V. ceases operations for any reason, all existing Fideicomisos, beneficial ownership rights, and trust-held assets remain fully intact under the administration of Banco Covalto. Co-owners retain the right to appoint a replacement coordinator, engage alternative service providers, or manage their interests directly through the trustee.

6. Investment Risks

Investing in fractional real estate through Covest’s platform involves significant risks. You should carefully consider the following risks before making any investment decision:

• Illiquidity risk: Fractional ownership interests in real estate are not publicly traded and may be difficult or impossible to sell quickly. You may not be able to exit your investment when desired.
• Real estate market risk: Property values can decrease as well as increase. Local market conditions, economic cycles, and property-specific factors may adversely affect the value of your investment.
• Regulatory and legal risk: Changes in Mexican law, tax regulations, trust regulations, or foreign investment rules may affect the structure, operations, or profitability of the investment.
• Currency risk: Investments are denominated and priced in Mexican pesos and/or US dollars. Exchange rate fluctuations may affect the value of your investment when converted to your home currency.
• No guaranteed returns: Past performance is not indicative of future results. Projected rental income, appreciation, and returns are estimates only and are not guaranteed.
• Potential total loss of investment: You could lose all or a substantial portion of your invested capital. Do not invest more than you can afford to lose.
• Concentration risk: Investments through Covest are concentrated in a single country (Mexico) and a single asset class (real estate). This lack of geographic and sector diversification increases exposure to country-specific and market-specific risks.
• Counterparty risk: Covest relies on third-party service providers including property managers, notaries, legal counsel, and appraisers. The failure, negligence, or misconduct of any third party may adversely affect your investment.
• Technology and platform risk: Covest’s operations depend on digital infrastructure, including internet connectivity, cloud services, and third-party technology platforms. System outages, cybersecurity incidents, or technology failures may disrupt access to your investment information or delay transactions.
• Tax risk: Fractional property ownership in Mexico may create tax obligations in Mexico and/or your country of residence. Cross-border tax implications, withholding requirements, and changes in tax law may affect the net returns on your investment. Consult a qualified tax professional for advice specific to your situation.

7. No Deposit Insurance

Fideicomiso trust assets are segregated trust property held by Banco Covalto as fiduciary trustee. They are NOT bank deposits and are NOT covered by IPAB (Instituto para la Protección al Ahorro Bancario) or any other government deposit insurance or guarantee program.

The protection of trust assets derives from their legal segregation under the Fideicomiso trust structure — trust property is separated from the trustee bank’s own balance sheet and is not available to the bank’s creditors in the event of the bank’s insolvency. This legal segregation is a structural protection established by Mexican banking law, not a government-backed insurance guarantee.

Investors should not confuse the institutional role of a CNBV-regulated bank trustee with the existence of deposit insurance coverage. Your investment in a Fideicomiso is an investment in real estate, not a bank deposit.

8. Third-Party Service Providers

Covest coordinates a network of independent third-party service providers to facilitate the acquisition, management, and administration of fractional real estate investments. These providers may include, but are not limited to:

• Property management companies responsible for day-to-day operations, maintenance, and rental management.
• Licensed notaries public (notarios públicos) who authenticate and protocolize trust documents.
• Legal counsel providing advice on trust structuring, compliance, and regulatory matters.
• Real estate appraisers providing independent property valuations.
• Technology vendors providing digital infrastructure, identity verification, and data storage services.

Covest exercises commercially reasonable care in selecting and coordinating third-party service providers, but does not guarantee their performance, solvency, or continued availability. Each provider operates independently and bears its own professional and legal liability. Covest assumes no liability for acts, omissions, negligence, or misconduct of any independent third-party service provider.

9. Digital Process Disclaimers

Covest’s platform enables certain legal and administrative processes to be completed digitally. Investors should understand the following regarding these digital processes:

• Electronic signatures: Trust documents may be executed using advanced electronic signatures recognized under Mexico’s Commerce Code (Código de Comercio) and the Advanced Electronic Signature Law (Ley de Firma Electrónica Avanzada). Electronic signatures carry the same legal weight as handwritten signatures when executed in compliance with applicable law.
• Remote notarization: Notarial acts may be performed remotely through authorized digital notarial protocols. Remote notarization carries the same legal validity as in-person notarization under Mexican law.
• Document preservation: Digital documents are preserved in compliance with NOM-151-SCFI (Official Mexican Standard for conservation of data messages), ensuring legal admissibility and integrity of electronic records.
• Technology risks: Digital processes depend on internet connectivity, cloud infrastructure, third-party software platforms, and cybersecurity systems. Covest cannot guarantee uninterrupted availability of its platform or immunity from cybersecurity threats, system failures, or technological disruptions.

While Covest takes commercially reasonable measures to ensure the security and reliability of its digital infrastructure, no technology platform is immune to disruption. Investors should maintain independent copies of all investment documentation.

10. Regulatory Status

Covest Proptech, S.A. de C.V. is NOT registered as an investment advisor, securities broker, financial intermediary, or crowdfunding institution in Mexico or in any other jurisdiction.

The Fideicomiso (bank trust) used to structure fractional ownership is a civil trust instrument recognized under Mexican law (Ley General de Títulos y Operaciones de Crédito). It is NOT a security, collective investment scheme, or investment fund regulated by the Comisión Nacional Bancaria y de Valores (CNBV) or any other securities regulator.

Participation in Covest’s platform does not constitute the purchase of a security, share, or regulated financial instrument under Mexican or international securities laws.

11. Not Financial, Legal, or Investment Advice

All content published on covest.mx, including property descriptions, projected returns, investment summaries, educational materials, and any other information, is provided for informational purposes only.

Nothing on covest.mx constitutes financial advice, legal advice, investment advice, tax advice, or any other form of professional advice. Covest does not make recommendations regarding the suitability of any investment for any particular investor.

Before making any investment decision, you should consult with a licensed financial advisor, attorney, and/or tax professional who can evaluate your individual financial situation, investment objectives, risk tolerance, and applicable legal and tax obligations.

12. Forward-Looking Statements

Certain information on covest.mx, including projected rental yields, property appreciation estimates, expected returns, development timelines, and market outlooks, constitutes forward-looking statements.

Forward-looking statements are based on current expectations, assumptions, and projections about future events and conditions. They are subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied.

Past performance of any property, market, or investment strategy presented on covest.mx is not indicative of future results. Actual returns, income, and values may be significantly higher or lower than projected.

13. Governing Law and Jurisdiction

These disclosures, all trust agreements, and all transactions conducted through Covest’s platform are governed exclusively by the federal laws of the United Mexican States, including but not limited to the Ley General de Títulos y Operaciones de Crédito, the Ley de Instituciones de Crédito, and applicable civil and commercial codes.

Any disputes, controversies, or claims arising out of or relating to these disclosures or transactions conducted through covest.mx shall be subject to the exclusive jurisdiction of the competent federal courts located in Mexico City (Ciudad de México, CDMX), or to Mexican arbitration proceedings as specified in the applicable trust agreement.

By accessing covest.mx or participating in any investment, you agree to submit to the jurisdiction of Mexican federal courts and waive any objection to venue or jurisdiction in Mexico.