diff --git a/src/lib/bind/accessors.html b/src/lib/bind/accessors.html
index 66175deae6..be5e8d39d5 100644
--- a/src/lib/bind/accessors.html
+++ b/src/lib/bind/accessors.html
@@ -23,7 +23,7 @@
       _notifyChange: function(source, event, value) {
         value = value === undefined ? this[source] : value;
         event = event || Polymer.CaseMap.camelToDashCase(source) + '-changed';
-        this.fire(event, {value: value}, 
+        this.fire(event, {value: value},
           {bubbles: false, cancelable: false, _useCache: true});
       },
 
@@ -189,12 +189,12 @@
       return name[0].toUpperCase() + name.substring(1);
     },
 
-    _addAnnotatedListener: function(model, index, property, path, event) {
+    _addAnnotatedListener: function(model, index, property, path, event, negated) {
       if (!model._bindListeners) {
         model._bindListeners = [];
       }
       var fn = this._notedListenerFactory(property, path,
-        this._isStructured(path));
+        this._isStructured(path), negated);
       var eventName = event ||
         (Polymer.CaseMap.camelToDashCase(property) + '-changed');
       model._bindListeners.push({
@@ -214,17 +214,22 @@
       return e.path && e.path[0] !== target;
     },
 
-    _notedListenerFactory: function(property, path, isStructured) {
+    _notedListenerFactory: function(property, path, isStructured, negated) {
       return function(target, value, targetPath) {
         if (targetPath) {
           this._notifyPath(this._fixPath(path, property, targetPath), value);
         } else {
           // TODO(sorvell): even though we have a `value` argument, we *must*
           // lookup the current value of the property. Multiple listeners and
-          // queued events during configuration can theoretically lead to 
-          // divergence of the passed value from the current value, but we 
+          // queued events during configuration can theoretically lead to
+          // divergence of the passed value from the current value, but we
           // really need to track down a specific case where this happens.
           value = target[property];
+
+          if (negated) {
+            value = !value;
+          }
+
           if (!isStructured) {
             this[path] = value;
           } else {
diff --git a/src/lib/bind/effects.html b/src/lib/bind/effects.html
index 06be143364..2f987fa11e 100644
--- a/src/lib/bind/effects.html
+++ b/src/lib/bind/effects.html
@@ -17,8 +17,7 @@
              effect.kind != 'attribute' &&
              effect.kind != 'text' &&
              !effect.isCompound &&
-             effect.parts[0].mode === '{' &&
-             !effect.parts[0].negate;
+             effect.parts[0].mode === '{';
     },
 
     _annotationEffect: function(source, value, effect) {
diff --git a/src/standard/effectBuilder.html b/src/standard/effectBuilder.html
index a99d4d26b5..9a184b7ef1 100644
--- a/src/standard/effectBuilder.html
+++ b/src/standard/effectBuilder.html
@@ -136,7 +136,7 @@
       if (Polymer.Bind._shouldAddListener(note)) {
         // <node>.on.<dash-case-property>-changed: <path> = e.detail.value
         Polymer.Bind._addAnnotatedListener(this, index,
-          note.name, note.parts[0].value, note.parts[0].event);
+          note.name, note.parts[0].value, note.parts[0].event, note.parts[0].negate);
       }
       for (var i=0; i<note.parts.length; i++) {
         var part = note.parts[i];
diff --git a/test/unit/bind-elements.html b/test/unit/bind-elements.html
index 4ab6265d4d..e5f7b38b4e 100644
--- a/test/unit/bind-elements.html
+++ b/test/unit/bind-elements.html
@@ -293,6 +293,9 @@
       notifyingvalue="{{computedValue}}"
       computedvalue="{{value}}">
     </x-basic>
+    <x-basic id="basic4"
+      notifyingvalue="{{!negatedValue}}">
+    </x-basic>
   </template>
   <script>
     Polymer({
@@ -313,6 +316,9 @@
         },
         computedValue: {
           computed: 'computeComputedValue(a, b)'
+        },
+        negatedValue: {
+          value: false
         }
       },
       created: function() {
diff --git a/test/unit/bind.html b/test/unit/bind.html
index dd0cb0551e..49a1bea6ce 100644
--- a/test/unit/bind.html
+++ b/test/unit/bind.html
@@ -388,6 +388,13 @@
     assert.equal(listener.getCalls()[0].args[0].detail.value, 678);
   });
 
+  test('negated binding update negates value for parent', function() {
+    assert.equal(el.negatedValue, false);
+    assert.equal(el.$.basic4.notifyingvalue, true);
+    el.$.basic4.notifyingvalue = false;
+    assert.equal(el.negatedValue, true);
+  });
+
 });
 
 suite('1-way binding effects between elements', function() {
diff --git a/test/unit/notify-path-elements.html b/test/unit/notify-path-elements.html
index 48bf32cbfc..15dac904ef 100644
--- a/test/unit/notify-path-elements.html
+++ b/test/unit/notify-path-elements.html
@@ -14,7 +14,6 @@
   <template>
     <x-basic id="basic1" notifying-value="{{obj.value}}" attrvalue$="{{obj.value}}" othervalue="{{obj.value2}}"></x-basic>
     <x-basic id="basic2" notifying-value="{{obj.value}}" attrvalue$="{{obj.value}}"></x-basic>
-    <x-basic id="basic3" notifying-value="{{!obj.value}}" attrvalue$="{{!obj.value}}"></x-basic>
   </template>
   <script>
     Polymer({
diff --git a/test/unit/notify-path.html b/test/unit/notify-path.html
index 74f24c8233..c97257108a 100644
--- a/test/unit/notify-path.html
+++ b/test/unit/notify-path.html
@@ -234,106 +234,6 @@
     verifyNonNestedObserversOutput();
   });
 
-  test('negation', function() {
-    // Setup
-    var nested = {
-      obj: {
-        value: false
-      }
-    };
-    // Do the thing
-    el.nested = nested;
-    // Verify
-    assert.equal(el.$.basic.notifyingValue, false);
-    assert.equal(el.$.compose.$.basic1.notifyingValue, false);
-    assert.equal(el.$.compose.$.basic2.notifyingValue, false);
-    assert.equal(el.$.compose.$.basic3.notifyingValue, true);
-    assert.equal(el.$.forward.$.compose.$.basic1.notifyingValue, false);
-    assert.equal(el.$.forward.$.compose.$.basic2.notifyingValue, false);
-    assert.equal(el.$.forward.$.compose.$.basic3.notifyingValue, true);
-    assert.equal(el.$.basic.hasAttribute('attrvalue'), false);
-    assert.equal(el.$.compose.$.basic1.hasAttribute('attrvalue'), false);
-    assert.equal(el.$.compose.$.basic2.hasAttribute('attrvalue'), false);
-    assert.equal(el.$.compose.$.basic3.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.forward.$.compose.$.basic1.hasAttribute('attrvalue'), false);
-    assert.equal(el.$.forward.$.compose.$.basic2.hasAttribute('attrvalue'), false);
-    assert.equal(el.$.forward.$.compose.$.basic3.hasAttribute('attrvalue'), true);
-
-    // Do another thing
-    el.$.basic.notifyingValue = true;
-    // Verify
-    assert.equal(el.$.basic.notifyingValue, true);
-    assert.equal(el.$.compose.$.basic1.notifyingValue, true);
-    assert.equal(el.$.compose.$.basic2.notifyingValue, true);
-    assert.equal(el.$.compose.$.basic3.notifyingValue, false);
-    assert.equal(el.$.forward.$.compose.$.basic1.notifyingValue, true);
-    assert.equal(el.$.forward.$.compose.$.basic2.notifyingValue, true);
-    assert.equal(el.$.forward.$.compose.$.basic3.notifyingValue, false);
-    assert.equal(el.$.basic.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.compose.$.basic1.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.compose.$.basic2.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.compose.$.basic3.hasAttribute('attrvalue'), false);
-    assert.equal(el.$.forward.$.compose.$.basic1.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.forward.$.compose.$.basic2.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.forward.$.compose.$.basic3.hasAttribute('attrvalue'), false);
-
-    // Do another thing
-    el.$.forward.$.compose.$.basic1.notifyingValue = false;
-    // Verify
-    assert.equal(el.$.basic.notifyingValue, false);
-    assert.equal(el.$.compose.$.basic1.notifyingValue, false);
-    assert.equal(el.$.compose.$.basic2.notifyingValue, false);
-    assert.equal(el.$.compose.$.basic3.notifyingValue, true);
-    assert.equal(el.$.forward.$.compose.$.basic1.notifyingValue, false);
-    assert.equal(el.$.forward.$.compose.$.basic2.notifyingValue, false);
-    assert.equal(el.$.forward.$.compose.$.basic3.notifyingValue, true);
-    assert.equal(el.$.basic.hasAttribute('attrvalue'), false);
-    assert.equal(el.$.compose.$.basic1.hasAttribute('attrvalue'), false);
-    assert.equal(el.$.compose.$.basic2.hasAttribute('attrvalue'), false);
-    assert.equal(el.$.compose.$.basic3.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.forward.$.compose.$.basic1.hasAttribute('attrvalue'), false);
-    assert.equal(el.$.forward.$.compose.$.basic2.hasAttribute('attrvalue'), false);
-    assert.equal(el.$.forward.$.compose.$.basic3.hasAttribute('attrvalue'), true);
-
-    // Do another thing
-    el.set('nested.obj.value', true);
-    // Verify
-    assert.equal(el.$.basic.notifyingValue, true);
-    assert.equal(el.$.compose.$.basic1.notifyingValue, true);
-    assert.equal(el.$.compose.$.basic2.notifyingValue, true);
-    assert.equal(el.$.compose.$.basic3.notifyingValue, false);
-    assert.equal(el.$.forward.$.compose.$.basic1.notifyingValue, true);
-    assert.equal(el.$.forward.$.compose.$.basic2.notifyingValue, true);
-    assert.equal(el.$.forward.$.compose.$.basic3.notifyingValue, false);
-    assert.equal(el.$.basic.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.compose.$.basic1.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.compose.$.basic2.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.compose.$.basic3.hasAttribute('attrvalue'), false);
-    assert.equal(el.$.forward.$.compose.$.basic1.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.forward.$.compose.$.basic2.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.forward.$.compose.$.basic3.hasAttribute('attrvalue'), false);
-
-    // Do another thing
-    // no two way binding through negation
-    el.$.compose.$.basic3.notifyingValue = true;
-    // Verify
-    assert.equal(el.$.basic.notifyingValue, true);
-    assert.equal(el.$.compose.$.basic1.notifyingValue, true);
-    assert.equal(el.$.compose.$.basic2.notifyingValue, true);
-    assert.equal(el.$.compose.$.basic3.notifyingValue, true);
-    assert.equal(el.$.forward.$.compose.$.basic1.notifyingValue, true);
-    assert.equal(el.$.forward.$.compose.$.basic2.notifyingValue, true);
-    assert.equal(el.$.forward.$.compose.$.basic3.notifyingValue, false);
-    assert.equal(el.$.basic.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.compose.$.basic1.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.compose.$.basic2.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.compose.$.basic3.hasAttribute('attrvalue'), false);
-    assert.equal(el.$.forward.$.compose.$.basic1.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.forward.$.compose.$.basic2.hasAttribute('attrvalue'), true);
-    assert.equal(el.$.forward.$.compose.$.basic3.hasAttribute('attrvalue'), false);
-
-  });
-
   test('simlarly named properties', function() {
     var nested = {
       obj: {