what to do if a mechanics lien is filed against my property in nevada
Summary of Nevada Mechanic's Lien Law
Past Leon F Mead II & Sarah M. Thomas
Nevada'southward mechanic's lien law is unique in the United States. In re Fontainebleau Lien Litigation, 289 P.3d 1199, 1211 (Nev. 2012).
For this reason, an understanding of the statutory requirements for perfecting and enforcing a mechanics lien claim is critical for any contractor or material / equipment supplier performing work or supplying materials or equipment to Nevada construction projects.
The post-obit is a general summary of the key issues for enforcing a mechanics lien in Nevada. Information technology does non encompass all issues that may affect the enforceability or validity of your mechanics lien in Nevada. Therefore, this summary should not be considered legal advice.
Delight consult a Nevada licensed and mechanics lien experienced attorney before taking any activity on a mechanics lien merits in Nevada.
Need help? Give us a call (800) 722-2422
Proper License
Preliminarily (and critically), if a contractor'southward license is required to perform the work for which a lien claimant is seeking a lien in Nevada, the lien claimant must have the required classification license too as an adequate contract license limit corporeality.
The Nevada State Contractors Board issues a specific limitation on the maximum contract amount a licensee may perform when issuing a license.
A contractor entering into a contract in excess of that limit amount is considered unlicensed, with very limited exceptions.
Submitting a bid in excess of the license limit makes a contractor subject to administrative discipline.
An unlicensed lien claimant (when a license is required) has no right to record a lien (NRS 108.222(2)), and has no right to recover for its performed work or enforce its contract (NRS 624.320).
Preliminary Notice / Actual Discover
In Nevada, a preliminary notice is called a "Find of Right to Lien". Unless a lien claimant has a direct contract with a Nevada project's possessor (NRS 108.245(5)), a lien claimant is required to serve a project's owner with a Discover of Right to Lien inside 31 days after kickoff supplying labor, materials, equipment or services for the project. NRS 108.245(1). There are a few exceptions to this requirement, however:
- A lien claimant that "performs but labor" is excepted from this requirement (what is meant by "labor" here has not been divers);
- A union benefit trust fund or other person seeking to recover unpaid wages or benefits for work performed on a project is exempted, as well;
- By instance law that is arguably wrongly decided, a lien claimant of whom a projection possessor has bodily cognition that it is performing construction work on its project, may also be exempt. The "actual notice" exception is potentially problematic, however, because if a lien claimant is required to serve a Notice of Right to Lien, the corporeality of its mechanics lien is limited to the value of piece of work performed / materials or equipment provided during the 31 days prior to the service of the Notice of Right to Lien and thereafter (NRS 108.245(6)). This limitation was not discussed in the case law establishing the "actual find" exception, and therefore lien claimants should non rely on that exception.
Residential (including Flat) Projects
While non applying to commercial, industrial or other non-residential structure projects, should a lien claimant seek to record a mechanics lien on a single family or multi-family residential construction project it must serve a Notice of Intent to Lien not later than xv calendar days prior to recording its Discover of Lien.
If the Notice of Intent to Lien is served less than 15 days earlier the expiration of the time to record a Mechanics' Lien, service of the Observe of Intent to Lien will extend the time to tape the Mechanics' Lien upwards to 15 days.
If the Notice of Intent to Lien is not served, a lien claimant may non record or enforce a Mechanics' Lien on the project.
THIS DOES NOT APPLY TO Non-RESIDENTIAL PROJECTS!!!
It is critical to call up that serving a Notice of Intent to Lien on a non-residential utilize project WILL NOT extend the time to record a Mechanics Lien on that Projection.
This is a trap for the unwary and should be avoided at all costs.
Mechanics Lien Recording
A mechanics lien is perfected in Nevada past recording a Find of Lien with the land recorder where some part of the Project is located.
There is a specific form in the statute (NRS 108.226) that must exist used.
The Detect of Lien must be recorded inside 90 days of the last engagement the lien claimant has performed work or provided materials and equipment to the projection, or ninety days of the last labor or material and equipment performed / provided on the projection, whichever is afterward.
Should a valid Discover of Completion exist recorded on the project by its owner, a lien claimant who was properly served with the Find of Completion must record its Notice of Lien inside forty days of the Notice of Completion being recorded.
Notices of Lien recorded after these time frames are not valid.
One time the Detect of Lien is recorded, information technology must be served on all owners of the project liened inside thirty days of the Notice of Lien being recorded. The recorded Notice can be served by personal service or certified mail service.
In that location is also a xxx day "cooling off" period later on the Notice of Lien is recorded; that is, no lawsuit may be filed to enforce the Notice of Lien inside 30 days after it is recorded.
Mechanics Lien Foreclosure / Enforcement
A Nevada mechanics lien is only valid for vi months after it is recorded, unless a lawsuit to enforce the Notice of Lien is commenced in Court or a written extension of that time is recorded earlier that 6 months has expired.
An extension of fourth dimension to enforce a Find of Lien is rarely done and has specific requirements, so it should only be attempted past a Nevada licensed chaser, with feel in Nevada'south Mechanics Lien Police force.
Similarly, information technology is likely necessary for a lien claimant to retain a Nevada licensed / Nevada mechanics lien experienced attorney to enforce the Notice of Lien.
In addition to filing a lawsuit to enforce the Notice of Lien within 6 months of it being recorded, Nevada police requires that Detect of Foreclosure of the Notice of Lien exist filed and served on all other persons claiming a Notice of Lien on the Projection, and a Notice of Lis Pendens be filed and recorded also.
These are tasks that accept specific requirements to complete, and should only be handled by a Nevada licensed chaser.
Other Remedies
Different other states, Nevada has no remedy allowing a lien claimant to serve a Stop Payment Notice. Nevada does have a Prompt Payment Act, however, that will allow a lien claimant to stop work when it has non been paid, nether certain circumstances.
Nevada besides will enforce a project-wide functioning bond, if one is provided on the projection.
As previously mentioned, none of these remedies should be attempted on your specific projection, except under the guidance of a Nevada licensed / Nevada mechanics lien constabulary experienced chaser.
Need assist? Give united states of america a call (800) 722-2422
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Source: https://www.bicanet.com/nevada-mechanics-lien/
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