Notice Of Non-Responsibility

What Is a Notice Of Non-Responsibility?

A notice of non-responsibility is a legal document used by property owners in the United States to protect themselves from liability for failing to pay for services performed to improve their property. The laws governing a property owner's liability for nonpayment vary by state, but most jurisdictions allow construction companies and other service providers to file a lien. This lien, known as a mechanic's lien or construction lien, can be placed on a property that they have worked to improve but have not been paid for.

How a Notice Of Non-Responsibility Works

Notices of non-responsibility vary by state, but in general, they are forms filled out by a property owner, filed with the county clerk, and posted at the owner's property declaring that the property owner is not liable for work done on the property if the owner has not directly contracted for that work to be done.

Some property owners mistakenly believe that notices of non-responsibility are more powerful than they are. In most jurisdictions, these notices do not protect property owners from construction liens for work that they are aware of or have commissioned themselves. Furthermore, they do not protect property owners if the proper procedure for filing notices is not followed.

Notice of Non-Responsibility vs. Construction Liens

Contractors commonly file construction liens, also known as mechanic's liens, when they have not been paid for work completed. The order in which the work began usually determines the priority of multiple liens.

Example of Notice of Non-Responsibility

For example, under California state law, property owners or managers can fill out and file notices of non-responsibility for any claim arising from tenant improvements on the property.

If a property owner rents out a property to a tenant and the tenant hires a construction company to improve the property without the owner's permission, the property owner has ten days to file a notice of non-responsibility with the county clerk's office and post it at the property site. If used correctly, a notice like this can protect the property owner from a construction lien if the tenant fails to pay the construction company for services rendered.