We practice law in these areas:
All contractors should be in the practice of protecting their lien rights by providing the owner or developer of a project with “A Preliminary Lien Notice” before commencing work and upon signing a contract for the work to be performed. Thus if the owner or developer fails to pay for the work performed the contractor can then perfect the lien in an effort to effectuate payment for work performed.
NRS 108 governs the filing of a proper construction lien as follows:
Specifically to perfect a lien the following Statutes apply:
NRS 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.
- To perfect a lien, a lien claimant must record a notice of lien in the office of the county recorder of the county where the property or some part thereof is located in the form provided in subsection 5:
- Within 90 days after the date on which the latest of the following occurs:
- The completion of the work of improvement;
- The last delivery of material or furnishing of equipment by the lien claimant for the work of improvement; or
- The last performance of work by the lien claimant for the work of improvement; or
- Within 40 days after the recording of a valid notice of completion, if the notice of completion is recorded and served in the manner required pursuant to NRS 108.228.
- Within 90 days after the date on which the latest of the following occurs:
- The notice of lien must contain:
- A statement of the lienable amount after deducting all just credits and offsets.
- The name of the owner if known.
- The name of the person by whom the lien claimant was employed or to whom the lien claimant furnished the material or equipment.
- A brief statement of the terms of payment of the contract.
- A description of the property to be charged with the notice of lien sufficient for identification.
- The notice of lien must be verified by the oath of the lien claimant or some other person. The notice of lien need not be acknowledged to be recorded.
- It is unlawful for a person knowingly to make a false statement in or relating to the recording of a notice of lien pursuant to the provisions of this section. A person who violates this subsection is guilty of a gross misdemeanor and shall be punished by a fine of not less than $5,000 nor more than $10,000.
- A notice of lien must be substantially in the following form: Click here to download the form.
- Except as otherwise provided in subsection 7, if a work of improvement involves the construction, alteration or repair of multifamily or single-family residences, including, without limitation, apartment houses, a lien claimant, except laborers, must serve a 15-day notice of intent to lien incorporating substantially the same information required in a notice of lien upon both the owner and the reputed prime contractor before recording a notice of lien. Service of the notice of intent to lien must be by personal delivery or certified mail and will extend the time for recording the notice of lien described in subsection 1 by 15 days. A notice of lien for materials or equipment furnished or to be furnished for work or services performed or to be performed, except labor, for a work of improvement involving the construction, alteration or repair of multifamily or single-family residences may not be perfected or enforced pursuant to NRS 108.221 to 108.246, inclusive, unless the 15-day notice of intent to lien has been given to the owner.
- The provisions of subsection 6 do not apply to the construction of any nonresidential construction project.
(Added to NRS by 1965, 1160; A 1971, 367; 1995, 1507; 1997, 2692; 2003, 2597; 2005, 1898)
NRS 108.227 Service of copy of notice of lien.
- By personally delivering a copy of the notice of lien to the owner or registered agent of the owner;/li>
- By mailing a copy of the notice of lien by certified mail, return receipt requested, to the owner at the owner’s place of residence or the owner’s usual place of business or to the registered agent of the owner at the address of the registered agent; or
- If the place of residence or business of the owner and the address of the registered agent of the owner, if applicable, cannot be determined, by:
- Fixing a copy of the notice of lien in a conspicuous place on the property;
- Delivering a copy of the notice of lien to a person there residing, if such a person can be found; and
- Mailing a copy of the notice of lien addressed to the owner at:
- The place where the property is located;
- The address of the owner as identified in the deed;
- The address identified in the records of the office of the county assessor; or
- The address identified in the records of the county recorder of the county in which the property is located.
- If there is more than one owner, failure to serve a copy of the notice of lien upon a particular owner does not invalidate a notice of lien if properly served upon another owner.
- Each subcontractor who participates in the construction, improvement, alteration or repair of a work of improvement shall deliver a copy of each notice of lien required by NRS 108.226 to the prime contractor. The failure of a subcontractor to deliver the notice to the prime contractor is a ground for disciplinary proceedings pursuant to chapter 624 of NRS.
(Added to NRS by 1965, 1161; A 1969, 1099; 1987, 99; 2003, 2599; 2007, 2716)
NRS 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.
- The debtor of the lien claimant or a party in interest in the property subject to the notice of lien who believes the notice of lien is frivolous and was made without reasonable cause, or that the amount of the notice of lien is excessive, may apply by motion to the district court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court to show cause why the relief requested should not be granted.
- The motion must:
- Set forth in detail the legal and factual grounds upon which relief is requested; and
- Be supported by:
- A notarized affidavit signed by the applicant setting forth a concise statement of the facts upon which the motion is based; and
- Documentary evidence in support of the affidavit, if any.
- If the court issues an order for a hearing, the applicant shall serve notice of the application and order of the court on the lien claimant within 3 days after the court issues the order. The court shall conduct the hearing within not less than 15 days or more than 30 days after the court issues the order for a hearing.
- The order for a hearing must include a statement that if the lien claimant fails to appear at the time and place noted, the notice of lien will be released with prejudice and the lien claimant will be ordered to pay the reasonable costs the applicant incurs in bringing the motion, including reasonable attorney’s fees.
- If, at the time the application is filed, an action to foreclose the notice of lien has not been filed, the clerk of the court shall assign a number to the application and obtain from the applicant a filing fee of $85. If an action has been filed to foreclose the notice of lien before the application was filed pursuant to this section, the application must be made a part of the action to foreclose the notice of lien.
- If, after a hearing on the matter, the court determines that:
- The notice of lien is frivolous and was made without reasonable cause, the court shall make an order releasing the lien and awarding costs and reasonable attorney’s fees to the applicant for bringing the motion.
- The amount of the notice of lien is excessive, the court may make an order reducing the notice of lien to an amount deemed appropriate by the court and awarding costs and reasonable attorney’s fees to the applicant for bringing the motion.
- The notice of lien is not frivolous and was made with reasonable cause or that the amount of the notice of lien is not excessive, the court shall make an order awarding costs and reasonable attorney’s fees to the lien claimant for defending the motion.
- Proceedings conducted pursuant to this section do not affect any other rights and remedies otherwise available to the parties.
- An appeal may be taken from an order made pursuant to subsection 6. A stay may not be granted if the district court does not release the lien pursuant to subsection 6.
- If an order releasing or reducing a notice of lien is entered by the court, and the order is not stayed, the applicant may, within 5 days after the order is entered, record a certified copy of the order in the office of the county recorder of the county where the property or some part thereof is located. The recording of a certified copy of the order releasing or reducing a notice of lien is notice to any interested party that the notice of lien has been released or reduced.
(Added to NRS by 1995, 1505; A 1997, 2693; 2003, 2600; 2005, 1900)
NRS 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.
- The owner may record a notice of completion after the completion of the work of improvement.
- The notice of completion must be recorded in the office of the county recorder of the county where the property is located and must set forth:
- The date of completion of the work of improvement.
- The owner’s name or owners’ names, as the case may be, the address of the owner or addresses of the owners, as the case may be, and the nature of the title, if any, of the person signing the notice.
- A description of the property sufficient for identification.
- The name of the prime contractor or names of the prime contractors, if any.
- The notice must be verified by the owner or by some other person on the owner’s behalf. The notice need not be acknowledged to be recorded.
- Upon recording the notice pursuant to this section, the owner shall, within 10 days after the notice is recorded, deliver a copy of the notice by certified mail, to:
- Each prime contractor with whom the owner contracted for all or part of the work of improvement.
- Each potential lien claimant who, before the notice was recorded pursuant to this section, either submitted a request to the owner to receive the notice or delivered a preliminary notice of right to lien pursuant to NRS 108.245
- The failure of the owner to deliver a copy of the notice of completion in the time and manner provided in this section renders the notice of completion ineffective with respect to each prime contractor and lien claimant to whom a copy was required to be delivered pursuant to subsection 4.
(Added to NRS by 1965, 1161; A 1989, 900; 1993, 853; 1995, 1508; 2003, 2601)
NRS 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.
- At any time before or during the trial of any action to foreclose a lien, a lien claimant may record an amended notice of lien to correct or clarify the lien claimant’s notice of lien. The lien claimant shall serve the owner of the property with an amended notice of lien in the same manner as required for serving a notice of lien pursuant to NRS 108.227 and within 30 days after recording the amended notice of lien. A variance between a notice of lien and an amended notice of lien does not defeat the lien and shall not be deemed material unless the variance:
- Results from fraud or is made intentionally; or
- Misleads an adverse party to the party’s prejudice, but then only with respect to the adverse party who was prejudiced.
- Upon the trial of any action or suit to foreclose a lien, a variance between the lien and the proof does not defeat the lien and shall not be deemed material unless the variance:
- Results from fraud or is made intentionally; or
- Misleads the adverse party to the party’s prejudice, but then only with respect to the adverse party who was prejudiced.
- In all cases of immaterial variance the notice of lien may be amended, by amendment duly recorded, to conform to the proof.
- An error or mistake in the name of the owner contained in any notice of lien does not defeat the lien, unless a correction of the notice of lien in a particular instance would prejudice the rights of an innocent bona fide purchaser or encumbrancer for value, but then only with respect to the bona fide purchaser or encumbrancer for value who was prejudiced.
- Upon the trial, if it appears that an error or mistake has been made in the name of the owner or that the wrong person has been named as owner in any notice of lien, the court shall order an amended notice of lien to be recorded with the county recorder where the original notice of lien was recorded and shall issue to the person who is so made to appear to be the original owner a notice directing the person or persons to be and appear before the court within the same time as is provided by Nevada Rules of Civil Procedure for the appearance in other actions after the service of summons, which notice must be served in all respects as a summons is required to be served, and to show cause why:
- That person or persons should not be substituted as the correct owner in the notice of lien and in the suit, in lieu of the person so made defendant and alleged to be owner by mistake.
- That person or persons should not be bound by the judgment or decree of the court. Such proceedings must be had therein as though the party so cited to appear had been an original party defendant in the action or suit, and originally named in the notice of lien as owner, and the rights of all parties must thereupon be fully adjudicated.
- A notice of lien which contains therein the description of the property supplied by and set forth in the notice of completion recorded pursuant to NRS 108.228 must, for all purposes, be sufficient as a description of the actual property upon which the work was performed or materials or equipment were supplied, and amendment of the notice of lien or amendment of the pleading filed by the lien claimant in a foreclosure action, or both, may be made to state the correct description, and the corrected description relates back to the time of recording the notice of lien, unless a correction of the notice of lien in a particular instance would prejudice the rights of an innocent bona fide purchaser or encumbrancer for value, but then only with respect to the bona fide purchaser or encumbrancer for value who was prejudiced.
(Added to NRS by 1965, 1162; A 2003, 2602)
PROTECT YOUR LIEN RIGHTS- GET PAID FOR THE WORK YOU PERFORM! Hurtik Law & Associates can help you protect your rights and/or proceed with litigation to foreclose on the lien and collect your contractual payments that should have been paid to you.
- Preliminary Notices are typically required in Nevada. The “Notice of Right to Lien” must be delivered to the Owner within 31 days of furnishing any labor or materials. Those who contract directly with the owner, and laborers working for wages, are not required to send this notice.
- Notice of Intent to Lien must be sent 15-days before filing a mechanic’s lien by any person looking to claim a lien (except laborers) on any single or multi-family residences (including apartment buildings). Sending this Notice of Intent will extend the time to record the Notice of Lien by 15 days. The Notice must be sent to the prime contractor and the property owner.
- Prime Contractors (those who contract with the owner) are not required to deliver notice to preserve lien rights, but they may be accessed a penalty by the State Contractors Board if they do not deliver a copy of the “lien information” notice to each subcontractor, and advise the owner of the subcontractors on the job and that the owner may receive a Notice of Lien Rights. NRS 108.246.