Notice Of Non-Responsibility
Categories: Insurance
Official notice that you’ve become a teenager...or a retiree.
You own a house that you rent out to a college fraternity. The frat wants to add a ball pit and ceiling swing in the basement. You know, for parties. They are going to pay for the updates themselves...they just want your permission. You don’t want to be liable if the frat stiffs the contractor they hire to do the work. (These college kids today.)
How do you protect yourself? A notice of non-responsibility. It's a document that says that the person hiring the contractor is responsible for paying, even though you own the property. As the property holder, you aren't responsible.
It avoids what's called a "mechanics lien liability": the possibility that a disgruntled contractor would try to get a lien on the property if they don't get paid for work. You aren't responsible for paying, as laid out in the official notice of non-responsibility. Therefore, if the situation turns sour, they can't turn to you. You have a legal document that allows you to say, with the full force of the courts behind you, "Not my problem."
