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732 N. Diamond Bar Blvd. #114 - Diamond Bar, CA 91765
Phone: (909) 396-1451 - Fax: (909) 396-1453

Will a Notice of Non-Responsibility Prevent Enforcement
of a California Mechanics Lien?

The “Notice of Non-Responsibility” is one of the most misunderstood and ineffectively used of all the legal tools available to property owners in California construction law. As a result, in most cases the answer to the above question is “No”, the posting and recording of a Notice of Non-Responsibility will not prevent enforcement of a California Mechanics Lien.

The mechanics lien is a tool used by a claimant who has not been paid for performing work or supplying materials to a construction project.  It provides the claimant the right to encumber the property where the work was performed and thereafter sell the property in order to obtain payment for the work or materials, even though the claimant had no contract directly with the property owner. When properly used, a Notice of Non-Responsibility will render a mechanics lien unenforceable against the property where the construction work was performed.  By derailing the mechanics lien the owner protects his property from a mechanics lien foreclosure sale. Unfortunately, owners often misunderstand when they can and cannot effectively use a Notice of Non-Responsibility.  As a result, the Notice of Non-Responsibility is usually ineffective in protecting the owner and his property..

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Capitol Connection Q&A for Contractors
By Shauna Krause, President, Capitol Services, Inc

The name’s the thing in causing our first contractor to call. A bi-coastal contractor needs ‘expedited’ advice on how to move from current corporate license classes to his LLC, without affecting work in progress. We also share a lesson in Arizona licensing…

Q:  We currently have a contractor’s license for our corporation that operates out of Northern California we’ll call it ABC Roofing Inc.  We opened an operation in Southern California and our accountant formed a separate corporation for payroll purposes, we’ll call this one XYZ Roofing Inc.  Can we just add XYZ Roofing Inc. as a dba to ABC Roofing Inc.’s license?

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Southern California
Builders Association
732 N. Diamond Bar Blvd. #114
Diamond Bar, CA 91765
Phone: (909) 396-1451
Fax: (909) 396-1453

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