Source: https://www.levelset.com/mechanics-lien/nevada-lien-law-faqs/
Timestamp: 2019-06-24 23:48:09
Document Index: 624737885

Matched Legal Cases: ['§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108', '§ 108']

Nevada Mechanics Lien Law in Construction - FAQs, Forms, & Resources
Nevada Mechanics Lien Guide and FAQs
File Your Nevada Mechanics Lien & Get Paid!
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Nevada Mechanics Lien Overview
Generally none. Notice of Intent 15 days prior to lien on residential projects.
Lien must be filed within 90 days of last providing labor or materials, or completion of work (whichever is later). Action to enforce due within 6 months from lien's filing.
Notice to owner and prime within 31 days of first furnishing labor or materials. Notice of Intent 15 days prior to lien on residential projects (not required for laborers).
View All FAQs View Nevada Mechanics Lien Forms
Contractors & suppliers have strong lien rights in Nevada. If a contractor or supplier isn’t paid on an Nevada job, they can turn to filing a lien to speed up payment and protect themselves. However, there are specific requirements and rules that must be followed. Here are 5 essential things you need to know about Nevada’s mechanics lien law.
1) Most Project Participants Have Nevada Mechanics Lien Rights
Nevada mechanics lien law is especially inclusive. As long as a party provided labor and/or materials worth $500 or more, they likely have Nevada mechanics lien rights. Parties provided protection include contractors, subcontractors, suppliers, equipment lessors, architects, engineers, surveyors, geologists are all allowed lien rights. Even consultants performing work at the project site may be allowed rights!
The only project participants with a hoop to jump through are material suppliers. Suppliers only have lien rights if the materials provided are actually used for the project. It is not enough for materials only to be delivered to the property – they must be used and/or consumed into the project.
Further, it is worth noting that if the potential lien claimant is required to be licensed by Nevada for the type of work performed, that party may only claim a Nevada mechanics lien if he is licensed as required.
2) Deadline to File a Nevada Mechanics Lien May Be Quick
A mechanics lien in Nevada must be filed with the county recorder (in the county where the property is located) within 90 days of the date the lien claimant last provided labor and/or materials to the project or 90 days from the project’s completion or termination – whichever is later. However, if a Notice of Completion is filed, the time in which to file a Nevada mechanics lien is cut by more than half to only 40 days from the filing of the Notice of Completion.
On residential projects, a Notice of Intent to Lien must be sent to the property owner 15 days prior to filing the lien. Unlike many other states, the service of this notice in Nevada extends the time for filing the lien by 15 days.
3) Preliminary Notice is Generally Required
Typically all project participants are required to send a Notice of Right to Lien within 31 days of the date that labor and/or materials were first provided. Individuals exempt from this preliminary notice are parties who contracted directly with the property owner and wage laborers. The Notice of Right to Lien must be sent to both the property owner and the general contractor.
Residential project require an additional notice to be sent. As noted above, a Notice of Intent to Lien is required to be sent to the property owner 15 days prior to filing a lien on a residential project – and the service of this notice extends the lien filing period for 15 days.
Although general contractors are generally not required to send preliminary notice, the State Contractors Board may assess a penalty if a copy of the lien information notice has not been delivered to each subcontractor.
4) A Copy of the Nevada Mechanics Lien Must be Provided to Owner and General Contractor
In Nevada, not only it is required that a mechanics lien be recorded at the county recorder in the county where the property is located, a copy of the lien must also be sent to both the property owner and the general contractor via certified mail with return receipt requested within 30 days from the date the lien was filed. Failure to send a copy of the lien to the property owner may result in the lien being invalidated, and failure to send a copy of the lien to the general contractor may result in disciplinary proceedings against the subcontractor.
5) There May Be Opportunity for the Reimbursement of Some Fees
Generally, a lien includes the amount of an unpaid contract, subtracting any deductions or credits and adding any change orders. While fees such as attorney’s fees and filing costs are not to be included in the lien, sometimes they are awarded to a project participant in a successful foreclosure action. Reasonable overhead and lost profits might also be included by the court. It is important to note, however, that Nevada mechanics lien law specifically prohibits the recovery of consequential damages.
Notices are required in Nevada. Get yours today
Contractors, suppliers, property owners, construction lenders, and other vendors will encounter all kinds of lien-related paperwork and questions when working on Nevada construction jobs. Here are some of the common issues you may encounter, and answers written by construction attorneys and payment experts.
Who can file a Nevada Mechanics Lien?
Nevada mechanics lien laws are exceptionally inclusive. Generally, any party who provides at least $500 worth of labor, materials, or equipment in relation to the improvement, property, or work of improvement is entitled to lien rights in Nevada. Equipment lessors, architects, engineers, surveyors, geologists are all allowed lien rights. Further, Nevada lien law is so broad that it may extend to consultants performing work at the project site.
Special rules used to apply to suppliers such that in order to have lien rights, the materials were required to be actually used and/or consumed into the project. A Nevada Supreme Court case, in which the 2005 modifications to the wording of the mechanics lien statutes were finally examined, overturned this requirement. Material suppliers now only must show that the materials were furnished for use in the project.
Finally, if the party doing the work is required by Nevada to be licensed to perform that type of work, he may only claim a mechanics lien if he is licensed.
When is the deadline to file a Nevada Mechanics Lien?
In Nevada, a mechanics lien must be recorded with the county recorder of the county in which the property is located within 90 days of the latest of the following: 1) the completion of the work or improvement; or 2) the last furnishing of labor or materials by the lien claimant. However, this 90-day period may be shortened to 40 days if a Notice of Completion is filed.
On residential projects, a notice of intent to lien must be served on the owner at least 15 days prior to recording the lien itself. The service of this notice extends the time for filing the lien by 15 days.
Yes. Nevada requires that, in addition to recording the mechanics lien with the county recorder of the county in which the property is located, a copy of the lien must be served on the owner of the property within 30 days after the recording of the lien. The service may be accomplished by mailing the copy of the lien by certified mail, return receipt requested.
No. Attorney’s fees, collection costs (cost of preparing and filing the lien), and interest are not allowed to be included in the lien claim itself, but may be awarded by the court when the lien is foreclosed. Reasonable overhead and profit may be allowed, but Nevada specifically prohibits consequential damages. Generally, the lienable amount is the unpaid contract amount subtracting any deductions or credits and adding any change orders.
When is the deadline to enforce a Nevada Mechanics Lien, or, how long is my Lien effective?
In Nevada, an action to enforce a mechanics lien must be initiated within 6 months after recording the lien.
Will my Nevada Lien have priority over pre-existing mortgages or construction loans?
It depends, but generally no for “pre-existing” encumbrances. In Nevada, mechanics liens have priority over 1) any lien, mortgage, or other encumbrance that attaches to the property after the commencement of a work of improvement; and 2) any lien, mortgage, or other encumbrance which was unrecorded and of which the mechanic’s lien claimant had no knowledge at the commencement of the work. Any encumbrance imposed on the property after the beginning of work is subordinate to the mechanics liens – regardless of the date on which the mechanics liens were recorded.
Must the Nevada Lien include a legal property description?
No. Nevada requires a “description of the property to be charged with the notice of lien sufficient for identification.” This is generally regarded as a description which would enable a party familiar with the location to identify the property with reasonable certainty. However, the description should be as precise as possible to avoid any confusion or challenging of the description.
Must the Nevada Lien be notarized?
Yes. A mechanics lien in Nevada must be notarized to be valid.
Can I file a Nevada Lien if I'm unlicensed?
No. If a lien claimant is required to be licensed to perform the work for which he is attempting to claim a lien, he may not claim a mechanics lien unless he is licensed.
Can I file a Nevada Lien on a condominium project?
Who cancels the Nevada Lien if/when I get paid?
If a mechanics lien is satisfied, and the lien claimant receives a written request to release or discharge the lien, the lien claimant is required to record a discharge or release of the lien no later than 10 days after the satisfaction thereof. Failure to do so may result in penalties to the lien claimant.
Nevada statutorily mandates that all parties on a construction project use certain legislatively designed construction lien waiver forms. This state is one of only 11 states that requires this. If a contractor or owner asks you to use a lien waiver form that does not conform to the statutory form, the waiver will be invalid and the contractor could get in legal trouble. See this article: The 11 States with Statutory Lien Waiver Forms.
Also, Nevada state law prohibits contractors and suppliers from waiving their right to file a mechanics lien in contract.
To learn more about lien waivers, see our Nevada Lien Waiver FAQs and Resources.
Need More Help with Nevada Mechanic Liens? We're Here.
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Nevada Mechanics Lien Free Forms
Want to just fill out the Nevada mechanics lien form yourself and get it filed? Download an easy-to-fill-out mechanics lien document template for free. All Levelset documents are created and curated by construction attorneys and payment experts.
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Nevada Mechanics Lien Statute FAQs
The provisions of the Nevada statutes that permit the filing of mechanics liens and materialman’s liens can be found in Nevada’s Construction Lien Law, N.R.S.T. 9, Ch. 108 et. seq. The full text of the Nevada Construction Lien Law is provided below, and has been updated as of January 27, 2016.
Nevada's Mechanics Lien Statute
§ 108.221. Definitions
§ 108.22104. Agent of the Owner - Defined
§ 108.22108. Building - Defined
§ 108.22112. Commencement of Construction - Defined
§ 108.22116. Completion of the Work of Improvement - Defined
§ 108.22118. Construction Control - Defined
§ 108.2212. Contract - Defined
§ 108.22124. Equipment - Defined
§ 108.22128. Improvement - Defined
§ 108.22132. Lien - Defined
§ 108.22136. Lienable Amount - Defined
§ 108.2214. Lien Claimant - Defined
2. As used in this section, “laborer” includes, without limitation, an express trust fund to which any portion of the total compensation of a laborer, including any fringe benefit, must be paid pursuant to an agreement with that laborer or the collective bargaining agent of that laborer. For the purposes of this subsection, “fringe benefit” does not include any interest, liquidated damages, attorney’s fees, costs or other penalties that may be incurred by the employer of the laborer for failure to pay any such compensation under any law or contract.
§ 108.22144. Material - Defined
§ 108.22146. Notice of Lien - Defined
“Notce of lien” means a notice recorded pursuant to NRS 108.226 to perfect a lien.
§ 108.22148. Owner - Defined
§ 108.22156. Prevailing Lien Claimant - Defined
§ 108.2216. Prime Contract - Defined
§ 108.22164. Prime Contractor - Defined
§ 108.22168. Principal - Defined
§ 108.22172. Property - Defined
§ 108.22176. Surety - Defined
§ 108.2218. Surety Bond - Defined
§ 108.22184. Work - Defined
§ 108.22188. Work of Improvement - Defined
§ 108.222. Lien on Property, Improvements and Construction Disbursement Account; Amount of Lien; Lien Not Available to Unlicensed Contractor or Professional Who Must Be Licensed to Perform Work
§ 108.225. Priority of Liens
§ 108.226. Perfection of Lien: Time for Recording Notice of Lien; Contents of Notice of Lien; Verification; Penalty for Certain False Statements; Form for Notice of Lien; Notice of Intent to Lien Required Under Certain Circumstances
……………….. (print name), being first duly sworn on oath according to law, deposes and says:
this …… day of the month of ………… of the year ……
§ 108.227. Service of Copy of Notice of Lien
§ 108.2275. Frivolous or Excessive Notice of Lien; Motion; Hearing; Consequences of Failure to Appear; Effect on Action to Foreclose; Order; Appeal; Recording of Certified Copy of Order Releasing or Reducing Notice of Lien
§ 108.228. Notice of Completion: Recording; Contents; Verification; Delivery of Copy to Each Prime Contractor and Potential Lien Claimant; Effect of Failure to Deliver Copy to Prime Contractor or Lien Claimant
§ 108.229. Recording and Service of Amended Notice of Lien; Variances; Errors or Mistakes Do Not Defeat Lien; Exceptions; Amendments; Substitution of Defendants; Sufficiency of Notice of Lien
§ 108.231. Notice of Lien Against Two or More Separate Buildings or Mining Claims: Designation of Amount Due on Each; Effect of Failure to Designate Amount Due on Each
§ 108.232. Notice of Lien to Be Recorded; Fees of Recorder
§ 108.233. Duration of Lien
§ 108.234. Recording of Notice of Nonresponsibility by Interested Owner; Contents and Validity of Nonresponsibility; Service of Notice Nonresponsibility Upon Lessee and Prime Contractor; Prime Contractor's Obligations Upon Receipt of Notice of Nonresponsibility; Effect of Owner's Failure to Comply With Provisions of this Section
§ 108.235. Amount Recoverable by Prime Contractor; Payment of All Liens by Prime Contractor; Defense of Action on Notice of Lien; Withholding or Deduction of Money by Owner
§ 108.236. Court Must Declare Rank of All Lien Claimants or Class of Lien Claimants; Application of Proceeds
§ 108.237. Award of Lienable Amount, Cost of Preparing and Recording Notice of Lien, Costs of Proceedings and Representation, and Other Amounts to Prevailing Lien Claimant; Calculation of Interest; Award of Costs and Attorney's Fees When Lien Claim Not Upheld
§ 108.238. Right to Maintain Civil Action or Submit Controversy to Arbitration not Impaired
§ 108.239. Action to Enforce Notice of Lien: Complaint; Required Notices; Joinder of Persons Holding or Claiming Notice of Lien; Consolidation of Actions; Hearing and Judgment; Preferential Trial Setting; Binding Arbitration; Sale of Property
§ 108.2403. Lessee to Record Notice of Posted Security and Either Establish Construction Disbursement Account or Record Surety Bond Before Beginning Work of Improvement; Contents of Notice of Posted Security and Service Thereof; Effect of Failure to Comply With Requirements; Rights and Remedies Additional
§ 108.2405. Inapplicability of NRS 108.2403 and 108.2407 Under Certain Circumstances; Service of Notice of Waiver of Owners' Rights Upon Prime Contractor and Lien Claimants
(a) In a county with a population of 700,000 or more with respect to a ground lessee who enters into a ground lease for real property which is designated for use or development by the county for commercial purposes which are compatible with the operation of the international airport for the county.
§ 108.2407. Lien Claimant Has Lien Upon Funds in Construction Disbursement Account; Disbursement of Funds from Construction Disbursement Account; Lien Claimant May Notify Construction Control of Claim of Lien; Construction Control to Pay Legitimate Claim of Lien; Interpleader; Liability of Construction Control
§ 108.2413. Release of Lien Rights or Notice of Lien by Posting Surety Bond
§ 108.2415. Form of Surety Bond Posted to Release Lien; Form of Surety Bond Posted to Release All Prospective and Existing Lien Rights; Recording of Surety Bond; Service; Effect of Failure of Service; Effect of Recording and Service of Surety Bond
WHEREAS, ………. (name of principal), located at ………. (address of principal), desires to give a bond for releasing the following described property owned by ………. (name of owners) from that certain notice of lien in the sum of $………. recorded ….. (month) ….. (day) …. (year) in the office of the recorder in ………. (name of county where the property is located):
NOW, THEREFORE, the undersigned principal and surety do hereby obligate themselves to the lien claimant named in the notice of lien, ………., (name of lien claimant) under the conditions prescribed by NRS 108.2413 to 108.2425, inclusive, in the sum of $………. (1 ½ x lienable amount), from which sum they will pay the lien claimant that amount as a court of competent jurisdiction may adjudge to have been secured by the lien, including the total amount awarded pursuant to NRS 108.237, but the liability of the surety may not exceed the penal sum of the surety bond.
IN TESTIMONY WHEREOF, the principal and surety have executed this bond at ………., Nevada, on the ….. day of the month of ….. of the year ….
On ….. (month) ….. (day) …. (year) before me, the undersigned, a notary public of this County and State, personally appeared ………. who acknowledged that he or she executed the foregoing instrument as principal for the purposes therein mentioned and also personally appeared ………. known (or satisfactorily proved) to me to be the attorney in fact of the surety that executed the foregoing instrument, known to me to be the person who executed that instrument on behalf of the surety therein named, and he or she acknowledged to me that the surety executed the foregoing instrument.
WHEREAS, ………. (name of principal), located at ………. (address of principal), desires to give a bond for releasing the following described property owned by ………. (name of owners) from all prospective and existing lien rights and notices of liens arising from materials, equipment or work provided or to be provided under the prime contract described as follows:
NOW, THEREFORE, the undersigned principal and surety do hereby obligate themselves in the sum of $………. (1 ½ x amount of prime contract) to all prospective and existing lien claimants who have provided or hereafter provide materials, equipment or work under the prime contract, from which sum the principal and surety will pay the lien claimants the lienable amount that a court of competent jurisdiction may determine is owed to each lien claimant, and such additional amounts as may be awarded pursuant to NRS 108.237, but the liability of the surety may not exceed the penal sum of the surety bond. IN TESTIMONY WHEREOF, the principal and surety have executed this bond at ………., Nevada, on the ….. day of the month of ….. of the year …..
On ….. (month) ….. (day), ….. (year), before me, the undersigned, a notary public of this County and State, personally appeared ………. who acknowledged that he or she executed the foregoing instrument as principal for the purposes therein mentioned and also personally appeared ………. known (or satisfactorily proved) to me to be the attorney in fact of the surety that executed the foregoing instrument, known to me to be the person who executed that instrument on behalf of the surety therein named, and he or she acknowledged to me that the surety executed the foregoing instrument.
§ 108.2421. Action Against Principal and Surety on Surety Bond and Debtor: Action Before or After Surety Bond is Recorded; Time Within Which to Commence Action; Preferential Trial Setting; Expert Witnesses; Amount of Award to Prevailing Lien Claimant
§ 108.2423. Enforcement of Liability of Principal and Surety
(b) If an appeal has been taken from the judgment, the filing of the remittitur from the apellate court of competent jurisdiction pursuant to the rules fixed by the Supreme Court pursuant to Section 4 of Article 6 of the Nevada Constitution.
§ 108.2425. Exception to Sufficiency of Surety or Surety Bond; Order to Require Additional Security or Change, Substitute, or Add Securities or for Other Relief; Court May Order Principal to Obtain Additional Security or to Change or Substitute Securities if Amount of Surety Bond Insufficient; Surety to Remain Liable on Surety Bond Regardless of Payment of Premium
§ 108.243. Assignment of Lien
§ 108.2433. Discharge of Notice of Lien: Marginal Entries; Discharge or Release Must Be Recorded if Notice of Lien Recorded by Photographic Process; Presentation by Lien Claimant or Lien Claimant's Personal Representative or Assignee
§ 108.2437. Discharge of Notice of Lien; Recording by Lien Claimant; Form; Liability for Failure to Record
The undersigned did, on the ……. day of the month of ……. of the year ……., record in Book ………., as Document No. ………., in the office of the county recorder of ………. County, Nevada, its Notice of Lien, or has otherwise given notice of his or her intention to hold a lien upon the following described property or improvements, owned or purportedly owned by ……………, located in the County of ……………, State of Nevada, to wit:
2. If the lien claimant fails to comply with the provisions of subsection 1, the lien claimant is liable in a civil action to the owner of the property, his or her heirs or assigns for any actual damages caused by the lien claimant’s failure to comply with those provisions or $100, whichever is greater, and for a reasonable attorney’s fee and the costs of bringing the action.
§ 108.244. Limitation on Filing Complaint for Foreclosure of Notice of Lien
§ 108.245. Notice of Right to Lien; Form; Service; Effect
7. Upon commencement of work on a project, any prime contractor or subcontractor participating in a health or welfare fund or any other plan for the benefit of employees is required to notify such fund or plan of the name and location of the project so that the fund or plan may protect potential lien rights under NRS 108.221 to 108.146, inclusive.
8. As used in this section, “one who performs only labor” does not include an express trust fund to which any portion of the total compensation of a laborer, including, without limitation, any fringe benefit, must be paid pursuant to an agreement with that laborer or the collective bargaining agent of that laborer.
§ 108.2453. Waiver or Modification of Right, Obligation, or Liability Set Forth in NRS 108.221 to 108.246, Inclusive, Prohibited, Certain Conditions, Stipulations, or Provisions of Contract for Improvement of Property or Construction, or Alteration or Repair of Work of Improvement Void and Unenforceable
§ 108.2457. Term of Contract That Attempts to Waive or Impair Lien Rights of Contractor, Subcontractor, or Supplier Void; Requirements for Enforceability of Waiver or Release of Rights of Lien Claimant; Effect of Payment in Form of Two-Party Joint Check; Form
§ 108.246. Prime Contractor to Advise Owner of Content of NRS 108.245; Copy to Be Provided to Each Subcontractor; Failure to Comply With Requirements Constitutes ground for Disciplinary Action Against Prime Contractor