Contractors and suppliers who are not paid for their work on a construction project in Nevada have the right to file a mechanics lien to ensure payment. A mechanics lien serves as a legal resource that grants the unpaid entity a security interest in the property.
The mechanic’s lien process involves the steps and legal requirements for filing a mechanics lien in Nevada, including specific notices and the exclusion of unlicensed contractors.
At CRM Lien Services, we specialize in ensuring that you get paid quickly and reliably. We can prepare and file mechanics liens for you, taking into account Nevada mechanic’s lien law and state-specific rules and regulations.
This guide outlines the regulations, prerequisites, and deadlines necessary to successfully file a mechanics lien Nevada.
Key Takeaways
- Eligibility and Coverage: Nevada’s laws permit a wide range of construction participants to claim lien rights, including those who provide at least $500 worth of labor, materials, or equipment.
- Licensing and Deadlines: Only licensed contractors can file mechanics liens in Nevada, and liens must be filed within 90 days after the completion of the work or the last delivery of materials, shortened to 40 days if a Notice of Completion is filed.
- Preliminary Notices and Notarization: Filing parties must issue a Notice of Right to Lien within 31 days of starting work and a Notice of Intent to Lien 15 days before filing for residential projects. All liens must be notarized to be valid. The property description must be clear and precise enough to make the lien sufficient under Nevada law.
Who Can File a Nevada Mechanics Lien as a Lien Claimant?
Nevada’s mechanics lien laws are notably comprehensive. Typically, any entity contributing at least $500 in labor, materials, or equipment to a property improvement or construction project qualifies for lien rights in Nevada. This includes equipment lessors, engineers, architects, surveyors, and geologists, as well as consultants active on the project site. The details of the lien claimant’s contract, including the original contract amount and payment terms, are crucial for filing a valid lien.
Special conditions apply to suppliers, requiring that materials be actually utilized or incorporated into the project to qualify for lien rights. However, a significant ruling by the Nevada Supreme Court, reviewing the 2005 amendments to the mechanics lien statutes, has removed this stipulation. Now, material suppliers need only demonstrate that the materials were provided for use in the project to claim lien rights.
Can an Unlicensed Contractor File a Nevada Mechanics Lien?
No. In Nevada, if the work being performed requires licensing by the Nevada State Contractors Board, then a lien claimant must be properly licensed to be eligible to file a mechanics lien. This stipulation is strictly enforced to ensure that only qualified and legally recognized professionals can secure lien rights.
Without the appropriate license, a claimant’s attempt to file a lien is not only invalid but could potentially lead to legal repercussions, underscoring the importance of compliance with state licensing regulations.
When Is the Deadline to File a Nevada Mechanics Lien?
In Nevada, a mechanics lien must be filed within 90 days after either the completion of the project or the last date the lien claimant provided labor or materials, whichever occurs later.
If any changes or corrections are needed, an amended notice must be recorded before the deadline to foreclose the lien.
This 90-day timeframe can be reduced, however. If a Notice of Completion is filed and served, the lien must be filed within just 40 days from the date the notice was served.
For residential projects, it’s required to serve a Notice of Intent to Lien on the property owner at least 15 days before the lien is recorded. Serving this notice extends the lien filing deadline by an additional 15 days.
Does Stopping Work Affect the Lien Filing Deadline in Nevada?
Yes. Work on construction projects can unexpectedly halt, as seen during the recent COVID-19 crisis, affecting the timing and process for filing a mechanics lien.
In Nevada, a stoppage of work can influence your lien filing deadline. Under Nevada law, a project is deemed complete if work ceases for a continuous period of 30 days—a situation referred to as “cessation of labor.” In such cases, claimants are allowed 120 days to file their lien, which includes the 30 days of work stoppage plus an additional 90 days to submit the claim.
What Information Should Be Included in a Nevada Mechanics Lien?
A Nevada Notice of Lien, regulated by N.R.S. §108.226, must include the following essential information:
• Name of the property owners (if known);
• Name of the party who hired the claimant;
• Claimant’s name and address;
• A concise description of the payment terms in the claimant’s contract;
• Description of the property;
• Assessor’s parcel number (located at the top left corner of the first page);
• If the lien affects two or more properties with the same owner, specify the amount due for each property;
• The original contract amount;
• Total amount for any additional or changed work;
• Total payments received so far;
• The amount of the lien claim after accounting for all credits and offsets;
• A description of the work, materials, or equipment that the lien claimant furnished.
Does a Nevada Mechanics Lien Need to Be Notarized?
Yes. Under Nevada law, a mechanics lien must be notarized to ensure its validity and acceptance for recording.
Understanding Nevada’s NOI (Notice of Lien) Laws
A Notice of Intent to Lien (NOI) serves as a potent mechanism to secure payment for contractors and suppliers, acting similarly to a demand letter but with the added leverage of a potential Nevada mechanics lien.
Typically, a Notice of Intent is a document sent to the property owner (and occasionally to other stakeholders) to alert them about a payment issue and the potential filing of a lien if the dispute isn’t resolved promptly. The rules for serving a Notice of Intent and its contents can be intricate and vary by state.
In Nevada, a Notice of Intent to Lien is mandatory for all claimants (except laborers) on residential projects to maintain the right to file a valid and enforceable mechanics lien. This requirement is outlined in NRS §108.266, which mandates that an NOI must be sent at least 15 days before filing the lien claim. It is advisable for the NOI to include the details that would appear on the lien statement or even a copy of the proposed lien itself. The foregoing notice must accurately represent its contents as required by Nevada law.
Properly executing this process is crucial as lien rights hinge on the adequate and timely issuance of the NOI. Participants in Nevada construction can complete, print, and mail a Notice of Intent themselves or streamline the process by utilizing an online platform to send the document.
5 Essential Things to Know About Nevada Mechanics Liens
Contractors and suppliers possess robust lien rights in Nevada, providing them a means to expedite payment and protect their interests if they are unpaid on a job in the state. However, adherence to specific requirements and rules is crucial.
Here are five essential aspects of Nevada’s mechanics lien law you should know:
- Broad Eligibility for Lien Rights: Nevada’s mechanics lien law is notably inclusive. Parties who provide labor or materials valued at $500 or more typically qualify for lien rights. This protection extends to contractors, subcontractors, suppliers, equipment lessors, and design professionals like architects, engineers, surveyors, and geologists. Even consultants performing onsite work may qualify for lien rights.
- Material Suppliers Face Additional Requirements: For material suppliers, simply delivering materials isn’t sufficient to secure lien rights; the materials must be used in the project.
- Licensing Requirements for Lien Claimants: If a potential lien claimant performs work requiring licensing in Nevada, they must be properly licensed to file a mechanics lien.
- Strict Deadlines for Filing Liens: A Nevada mechanics lien must be filed within 90 days after the last provision of labor or materials or within 90 days following project completion or termination—whichever is later. If a Notice of Completion is filed, this period reduces to just 40 days. For residential projects, a Notice of Intent to Lien must be sent to the property owner 15 days before filing the lien, extending the filing period by an additional 15 days.
- Mandatory Preliminary Notices: Almost all project participants must issue a Notice of Right to Lien within 31 days of starting work or supplying materials. Direct contractors and wage laborers are typically exempt from this requirement. For residential projects, a Notice of Intent to Lien is also mandatory 15 days prior to a lien filing, and this notice extends the lien filing period by 15 days.
- Court Determines Lienable Amount and Priorities: During the enforcement process, the court determines the lienable amount of a lien claimant’s lien and the rights and priorities of lien claimants. This legal process ensures that all parties’ interests are fairly considered and adjudicated.
Furthermore, in Nevada, once a mechanics lien is filed, a copy must be sent to both the property owner and the general contractor via certified mail within 30 days. Neglecting to send these notices can invalidate the lien or lead to disciplinary actions.
While direct fees such as attorney’s fees and filing costs are generally not included in the lien amount, they may be awarded in successful foreclosure actions, along with reasonable overhead and lost profits. However, it’s important to remember that Nevada’s mechanics lien law explicitly prohibits the recovery of consequential damages.
How to File a Mechanics Lien in Nevada with the County Recorder?
If you’re looking to secure payment on a Nevada construction project using a mechanics lien, follow this comprehensive guide to navigate the process effectively.
First, it’s essential to comply with Nevada’s preliminary notice and timing requirements before you can file a valid mechanics lien. Preparing and filing the lien can be complex, but with the right guidance, you can manage it independently.
Step 1: Getting Started
- Obtain the Correct Mechanics Lien Form: While the form itself is standard, it must meet specific requirements to be accepted by Nevada’s recorder’s office. Start by downloading a reliable Nevada Mechanics Lien template, vetted by construction attorneys and payment experts.
Filling Out the Nevada Mechanics Lien Form:
- Claimant Information: Clearly identify yourself or your company with full, correct names and addresses.
- Payment Information: Include details such as the original contract price, any additional work, materials, and the total payments received.
- Lien Amount: Calculate the lien amount by considering unpaid contract amounts, deductions, credits, and change orders. Note that Nevada allows for reasonable overhead and profits but excludes consequential damages, attorney fees, and interest.
- Owner Information: Accurately provide the property owner’s details. This can be challenging if multiple owners or tenants are involved.
- Property Description: The lien must include a precise property description sufficient for identification, as required by Nevada law.
- Hiring Party: Record the name and address of your client as per the contract documents.
- Terms of Payment: Summarize the payment terms, including dates and conditions, briefly.
- Signature and Notarization: Ensure the form is signed and notarized, as the recorder’s office will not accept it otherwise.
Step 2: How to File a Nevada Mechanics Lien
- Filing Deadline: File the lien within 90 days of the last provided labor or materials. This reduces to 40 days if a Notice of Completion is filed by the property owner.
- Where to File: Submit your lien at the county recorder’s office where the property is located. Be aware of specific local filing fees and requirements. Recording the lien with the appropriate county recorder is crucial to ensure it is legally binding.
To make this process easier, we’ve put together a list of all Nevada county recorder’s offices and links to their sites:
- Carson City County Lien Filing (Recorder’s Site)
- Churchill County Lien Filing (Recorder’s Site)
- Clark County Lien Filing (Recorder’s Site)
- Douglas County Lien Filing (Recorder’s Site)
- Elko County Lien Filing (Recorder’s Site)
- Esmeralda County Lien Filing (Recorder’s Site)
- Humboldt County Lien Filing (Recorder’s Site)
- Lander County Lien Filing (Recorder’s Site)
- Lincoln County Lien Filing (Recorder’s Site)
- Lyon County Lien Filing (Recorder’s Site)
- Mineral County Lien Filing (Recorder’s Site)
- Nye County Lien Filing (Recorder’s Site)
- Pershing County Lien Filing (Recorder’s Site)
- Storey County Lien Filing (Recorder’s Site)
- Washoe County Lien Filing (Recorder’s Site)
- White Pine County Lien Filing (Recorder’s Site)
- E-Recording Option: Some counties offer electronic recording. If not available, you can mail or personally deliver the lien to the recorder’s office. Include a self-addressed stamped envelope for a copy of the recorded lien.
Step 3: Serving Notice of the Mechanics Lien
- Notice Requirement: After recording, serve a copy of the lien on the property owner within 30 days. If you are not the prime contractor, also serve the prime contractor to avoid potential disciplinary actions.
By carefully following these steps and ensuring all information is accurate and complete, your mechanic’s liens in Nevada can effectively secure your payment.
Get in Touch
Mechanics Lien Nevada Guide offers critical guidance for contractors and suppliers seeking payment security through a mechanics lien in Nevada.
At CRM Lien Services, we have been serving customers across the country with required reference documentation for lien claims since 1986. We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a mechanics lien, give us a call or shoot us an email.
We would love to work with you and help you lower your risk and get paid fast!
