When you send a preliminary notice for a project on FieldLatch.com, we do the research on the property's title. It's usually a straight forward process.

However, there is a special situation when the Landlord pro-actively records a Notice of Non-Responsibility (NNR) that lists the General Contractor and their Tenant. This situation arises often in TI's (tenant improvement) projects, where the landlord seeks to limit lien exposure to the tenant's leasehold interest. This does not eliminate your need to issue a preliminary notice - however it does limit your ability to record a Mechanics Lien.

Notice of Non-Responsibility: Purpose and Limits

Under the California Civil Code, a Property Owner (aka Landlord) - who's not contracting and paying for the construction work - can record and post an Notice of Non-Responsibility (NNR) within 10 days of knowledge of the work. It must describe the property, disclaim responsibility, and be recorded with the County on title. When valid, it prevents liens from attaching to the owner's fee interest, confining them to the leasehold (tenant's estate). Here's what you should consider:

1. Serving the Preliminary Notice is Still Important

Issue the preliminary notice and serve the landlord (owner), GC, tenant, and any lender. This lets all the parties involved know that you are on the job, it also sets the tone that you are serious about payment, and finally, it sets you up to win any legal disputes down the line.

2. Strengthen Payment Security

If this is a large project, you can still demand from the GC to disclose if there are Payment Bonds — these bonds are optional but common. A preliminary notice would preserve bond claims, sidestepping NNR limits.

Side note: A payment bond (also called a labor and material payment bond) is a surety bond that guarantees payment to subcontractors, suppliers, and laborers if the GC fails to pay for work properly performed. If the GC has one, you can make a claim directly against the bond (and the surety company backing it) instead of—or in addition to—pursuing a mechanics' lien.

3. Enforcement if Unpaid

Record lien within 90 days of completion (or cessation). Target leasehold primarily, but challenge NNR validity to reach fee if grounds exist.

Serve stop payment notice on tenant or lender to freeze funds. Sue to foreclose lien or pursue contract claims against GC/tenant.

Litigation often settles when leasehold value or tenant exposure pressures payment.

Finally, You May Win by Challenging the Landlord

A leading California case on this issue is Howard S. Wright Construction Co. v. BBIC Investors, LLC, which illustrates how a landlord’s Notice of Non-Responsibility (NNR) can fail despite being properly recorded. The court found that the landlord’s active involvement in the tenant improvement project went beyond passive ownership. The landlord reviewed and approved plans, participated in meetings, exercised oversight, and maintained a level of control over the construction process. Because of that participation, the court concluded the landlord had effectively “caused” the work to be performed. As a result, the NNR did not shield the landlord’s ownership interest from the contractor’s mechanics’ lien. The case is significant because it demonstrates that merely recording an NNR is not enough; courts will look at the landlord’s actual conduct. If the landlord is sufficiently involved in the project, its fee interest may still be exposed to lien claims.

NNRs complicate but don't eliminate remedies. Leasehold liens can force tenant payment or lease termination threats. Stop notices or bonds often yield faster recovery.

In practice, when faced with a Notice of Non-Responsibility (NNR), prelims may not get you your standard lien rights. However, it still serves its other very important purpose which is to inform all parties that you were hired, and expect to be paid in full. And that makes the preliminary notice still well worth it!

Note: this is not legal advice. You should always consult with your attorney.