Question 1

What exactly do I own with Covest?

Accepted Answer

You own a deeded fractional ownership share in a real property, held in a Fideicomiso bank trust in which you are the beneficiary. This is not a timeshare, not a membership, and not a fund share. You hold beneficial ownership rights — the legal right to sell, rent, improve, and bequeath your fraction.

Question 2

Is the Fideicomiso really perpetual, or is it a 50-year lease?

Accepted Answer

The Fideicomiso is issued in 50-year increments and is legally renewable forever. This is not a lease — at the end of the term, the trust is maintained through Covest's platform fee — a single transparent monthly charge shared among co-owners. The Mexican government created this structure in 1973 specifically to enable full ownership rights for foreign investors.

Question 3

Can I sell my fraction to anyone?

Accepted Answer

Yes. You have the full legal right to sell your fractional ownership on the secondary market. Existing co-owners have a right of first refusal at fair market value, but if they decline, you are free to sell to any qualified buyer. The transaction is recorded in the Public Registry.

Question 4

What happens if Covest disappears?

Accepted Answer

Your ownership is platform-independent. The Fideicomiso is held by Covalto Bank for your benefit, not by Covest. Your beneficiary status is recorded in the Public Registry. If our platform ceased operations, the trust structure, governance rules, and your ownership rights remain fully intact.

Question 5

Can I bequeath my ownership to my heirs?

Accepted Answer

Yes. Your fractional ownership is fully inheritable. The Fideicomiso allows you to designate beneficiaries, and the transfer process follows standard Mexican succession law — streamlined through the trust structure.

Question 6

Can I really complete the entire purchase remotely?

Accepted Answer

Yes. Covalto Bank's digital infrastructure enables Covest to deliver 100% remote Fideicomiso formation — from identity verification and document signing to notarization and public registry filing.

Question 7

How does digital identity verification work?

Accepted Answer

You complete biometric identity verification through your device — facial recognition and government-issued ID validation. This meets full CNBV Know-Your-Customer requirements without requiring physical presence at a bank branch.

Question 8

Are digital signatures legally binding in Mexico?

Accepted Answer

Yes. Advanced electronic signatures are recognized under Mexico's Commerce Code and the Advanced Electronic Signature Law. Documents signed digitally through Covalto Bank's infrastructure carry the same legal weight as wet-ink signatures.

Question 9

How does remote notarization work?

Accepted Answer

Authorized notarial protocols allow trust documents to be notarized remotely through secure video sessions and digital verification. The notarized documents carry the same legal standing as those executed in a physical notary office.

Question 10

How long does the digital process take?

Accepted Answer

The typical digital ownership process takes 4–6 weeks from initial verification to recorded deed — compared to 3–6 months for traditional Mexican real estate transactions. The digital infrastructure eliminates the delays caused by in-person scheduling, paper processing, and courier logistics.

Question 11

What is the minimum investment?

Accepted Answer

The minimum entry point is $50,000 USD. This gives you a deeded fractional ownership share with full beneficial rights — personal use weeks, rental yield option, and the right to sell or bequeath.

Question 12

What are the annual costs beyond my initial investment?

Accepted Answer

Annual costs include: the platform and trust administration fee (varies by property — contact us for a detailed breakdown), which covers trust administration, property management, insurance, maintenance reserves, and owner reporting. Sinking fund contribution (reserve for capital expenditures) and property taxes (predial) are additional. All costs are transparent and reported quarterly.

Question 13

How does the rental yield work?

Accepted Answer

For any weeks you choose not to use personally, you can enroll them in the managed rental pool. The ISO-certified property manager handles guest acquisition, turnover, and maintenance. Net rental income is credited to your account quarterly.

Question 14

What is the sinking fund?

Accepted Answer

A mandatory reserve fund established from day one, funded by a percentage of each owner's annual assessment. This covers capital expenditures (roof replacement, HVAC, structural work) without emergency capital calls. The balance is reported quarterly.

Question 15

Are there any hidden fees?

Accepted Answer

No. Covest operates on full transparency. Every cost is documented in the operating agreement before purchase — there are no undisclosed management fees, no surprise assessments, and no revenue sharing that isn't explicitly agreed upon.

Question 16

How are disputes between co-owners resolved?

Accepted Answer

The operating bylaws include a structured dispute resolution process: first, mediation facilitated by the property management partner; second, binding arbitration if mediation fails. Voting is proportional to ownership share, and major decisions require supermajority approval.

Question 17

What happens if a co-owner defaults on payments?

Accepted Answer

Every Fideicomiso includes a mandatory default clause. If an owner fails to meet financial obligations: written notice is issued, a 90-day cure period begins, and if unresolved, a forced buyout mechanism activates at independently appraised fair market value. No owner can hold the group hostage.

Question 18

Who manages the property day-to-day?

Accepted Answer

An ISO 9001-certified property management partner handles all operations: cleaning, maintenance, guest services, and vendor coordination. They are audited annually and report to all owners quarterly.

Question 19

How do I vote on property decisions?

Accepted Answer

Voting is proportional to your ownership share. Day-to-day management is delegated to the certified operator. Major decisions (sale, renovation above threshold, change of management company) require a 66% supermajority vote among all beneficiaries.

Question 20

Can the management company be replaced?

Accepted Answer

Yes. The operating bylaws include provisions for management company replacement through supermajority vote. The Fideicomiso structure ensures that the property and ownership rights are independent of any service provider.

Question 21

How is property usage scheduled?

Accepted Answer

Two models are available depending on the syndicate structure: Fixed Weeks (specific weeks notarized into the trust agreement for guaranteed annual access) or Raffle Rotation (a snake-draft algorithm that ensures statistically equal access over a 5-year cycle).

Question 22

What is the Stay-or-Rent toggle?

Accepted Answer

90 days before each scheduled week, you declare 'Stay' (personal use with full concierge) or 'Rent' (enrolled in the managed rental pool for yield). This flexibility lets you monetize weeks you can't use.

Question 23

Can I swap weeks with other owners?

Accepted Answer

Yes, by mutual agreement. The operating bylaws allow owners to exchange scheduled weeks directly. The property manager facilitates the swap to ensure maintenance and turnover logistics are handled.

Question 24

What concierge services are included?

Accepted Answer

Every stay includes airport transfers, pre-arrival grocery stocking, daily housekeeping, and a dedicated property concierge. Additional services (private chef, excursions, spa treatments) are available on request.

Question 25

Can I bring guests?

Accepted Answer

Yes. During your scheduled weeks, the property is yours — you may host family and friends. Guest policies and maximum occupancy are outlined in the operating bylaws to protect the asset.

Question 26

How is my personal data protected?

Accepted Answer

All personal and financial data is encrypted in transit and at rest using bank-grade encryption protocols. Covalto Bank's infrastructure complies with Mexican data protection law (LFPDPPP) and international best practices.

Question 27

Is the biometric verification secure?

Accepted Answer

Biometric data is processed through Covalto Bank's CNBV-compliant infrastructure. Data is encrypted, never stored in raw form, and used solely for identity verification purposes. The process meets the same standards required for opening a regulated bank account.

Question 28

How do I verify my ownership independently?

Accepted Answer

Your ownership is recorded in Mexico's Public Registry of Property — a government-maintained record that anyone can verify. This is the same registry used for all real estate transactions in Mexico. Your Fideicomiso is a matter of public record.

Question 29

What regulatory framework governs the Fideicomiso?

Accepted Answer

The Fideicomiso is governed by Mexico's General Law of Negotiable Instruments and Credit Operations, supervised by the CNBV (National Banking and Securities Commission), and backed by the constitutional framework established in Article 27. Covalto Bank operates under full CNBV regulation.

Question 30

What happens during a banking crisis or economic downturn?

Accepted Answer

The Fideicomiso legally separates trust assets from the bank's own balance sheet. Even if the trustee bank faces financial difficulty, the trust assets (your property) are protected by law and must be transferred to another qualified trustee. Your ownership is independent of the bank's financial health.

Every question answered.

What exactly do I own with Covest?

Is the Fideicomiso really perpetual, or is it a 50-year lease?

Can I sell my fraction to anyone?

What happens if Covest disappears?

Can I bequeath my ownership to my heirs?