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Who's responsible for a lien for a tenant improvement project in California

Hello, I am a general contractor in California and I am in the process of entering into a contract with a customer for a tenant improvement project. The tenant has full plans and city building permit issued which wouldn't be issued without the property owners signature of allowance in our city. What do I do as far as protecting myself if the tenant decides not to pay me? Is the property owner responsible for the payment through mechanics lean laws if the tenant decides not to pay the contract? Thanks, Andrew

5 replies

Feb 18, 2020

The first step you should take is to send the property owner a 20-day Preliminary Notice so there is no question the owner knows you are performing the work. Then, the owner may be responsible on a lien claim depending upon several factors such as whether the owner posts and records a notice of non-responsibility and the terms of the lease or tenant improvement agreement between the tenant and owner

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Feb 18, 2020

Awesome, thank you for your response. Ok so if the owner doesn't have a recorded notice of non responsibility they are responsible? If they have recorded the notice of non responsibility than do i give a 20 day preliminary notice to the tenant and they become responsible or how do I protect myself with the tenant?

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Feb 18, 2020

There are several factors which determine whether the landlord would be responsible for the improvements, so send a Preliminary Notice in any event. The tenant will be liable to you on your contract (no 20-day Notice required) as well as to the extent of its interest in the property

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Feb 18, 2020

Ok sounds good, Thank you for your help I really appreciate it.

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Oct 8, 2021

Hi, I am a tenant for a new small bussiness. Landlord offer a TI. Everything is so expensive now so I decided me and my family member did the improvement ourself. They are asking for invoice and lien release. Do I need to provide one? Maybe an invoice of the project but how would I release a lien?

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