Further Clarification Regarding Tract Ownership and Invoicing Updates

Published: December 08, 2025

Thank you for reaching out and sharing your concerns regarding the recent assessment invoices. We understand for some owners, the updated billing reflects a higher amount than in previous years, and we want to provide clear explanation on why this change has occurred and what the Board is doing to support owners during the transition.

After consultation with the POA’s attorney, the Board has returned to the assessment requirements outlined in the original Declaration of Covenants. For several years, invoicing practices were applied using a relaxed interpretation of these provisions; however, to remain in full legal compliance, we are now required to apply the covenants exactly as written.

Pertinent Covenant Sections

The following sections of the Declaration govern how assessments must be billed:

1. Definition of “Owner” — Section Three, Article I, Section 1.21

“Owner” is defined as “the record owners, whether one or more persons or entities, of fee simple title to any Tract which is part of the subdivision.” Please note that Texas law further clarifies that an “entity” includes corporations, LLCs, partnerships, trusts, and other legal organizations.

Texas Business Organizations Code §1.002(18) — defining an entity as: “a domestic entity or foreign entity, including a corporation, limited liability company, partnership, limited partnership, professional entity, joint venture, trust, estate, association, or other legal or commercial entity.”

Because each record owner must be invoiced individually, tracts titled under different legal names or different legal entities must each receive their own assessment — even if all entities are controlled by the same individual.

2. Multiple Tracts Under One Owner — Section Three, Article VI, Section 6.02(a)

This section provides:

“If an Owner owns more than one Tract in the Subdivision, such Owner shall pay only twice the assessment of one (1) Tract, no matter how many Tracts are owned.

This limitation applies only when all tracts share the exact same record owner. It does not apply when tracts are titled to different individuals, corporations, LLCs, partnerships, trusts, and other legal organizations.

Example: if four tracts are titled to four different LLCs—even if controlled by the same person—each LLC is considered a separate “Owner,” and four assessments are required.

90-Day Grace Period for Owners

We recognize that returning to the original covenant requirements may require some owners to take administrative actions with the Erath County Appraisal District if they wish to consolidate or adjust title ownership.

To ease this transition, the Board is providing a 90-day grace period from December 1, the date of our original notice, to allow impacted owners time to make any desired changes.

Once you have completed any re-titling, please notify the Management Company and provide the updated documentation. After confirming the legal changes with the County records, a revised invoice will be issued based on the updated ownership structure.

Our Commitment to Transparency & Fair Application of the Covenants

We understand that these changes may feel sudden or burdensome, and we do not take lightly the impact on our property owners. However, the Board is obligated to apply the Declaration as written and as interpreted by legal counsel. Our goal is to ensure consistent, equitable, and fully compliant governance for the entire Mountain Lakes Ranch community.

If you have any questions about how these sections apply to your tract(s), or if you need help understanding the next steps, please reach out—we are here to support you through this process.

Mountain Lakes Ranch POA