Many in the construction industry know that California is a state in which notices are required to be sent. Not as many people know that its neighbor, Nevada, is also notice state. In fact, both preliminary notices and notices of intent to lien are required in Nevada and lien rights will often times be lost if the proper notices are not filed (as they will in many notice states).
Nevada Preliminary Notices
As stated above Nevada is a notice state. This essentially means that there are certain parties on every construction project who are required to notify other parties that labor and/or materials are being furnished to the job site. Nevada does not require the prime or general contractor to send this notice.
Nevada does, however, require any subcontractor, laborer, supplier, or equipment lessor to send a “Notice to owner and prime” within thirty-one (31) days of first furnishing labor or materials. This notice should be sent to the property owner and the prime contractor.
An important note is that this notice state requires the preliminary notice to owner and prime contractor be sent via United States Postal Service (USPS) certified mail, return receipt requested. This is the mailing with the sticker on the front containing a bar-code and a tracking number, to make it certified mail. To reach the level of return receipt requested, there needs to be a “green card” on the back which the recipient will sign before the postman and it will be returned to the sender, confirming delivery.
The timing and method of delivery are very important and if not correctly followed, can invalidate lien rights.
Notice of Intent to Lien
Nevada also requires a Notice of Intent to Lien on certain projects. I’m a firm believer that a Notice of Intent to Lien should be filed on all projects, whether it is required or not. This document informs all relevant parties that a lien is forthcoming unless the sender is paid.
In Nevada, the notice of intent is required on all residential projects (this includes apartment buildings). This notice of intent must be sent by any party who wishes to file a lien, and must be sent no less than fifteen (15) days before the lien is filed.
The fifteen day notice of intent to lien is not required on commercial projects, although as stated above, it may be smart to send this notice anyway.
The notice of intent to lien should be sent to the owner and any other party up the chain via certified mail return receipt requested.
Nevada §108.246 Notice
Nevada, as a notice state, does have its own statutory notice. Funnily enough this §108.246 notice is not required to preserve lien rights. It is required, however, so that prime or general contractors can stay current with Nevada Contractors Board and avoid fines.
The Nevada §108.246 notice requires prime contractors to deliver this specific notice to the property owner and to all subcontractors and suppliers. This must be sent by the prime or general on all jobs. Levelset files these for a large number of Nevada contractors each day.
Nevada, and every other notice state, has specific compliance rules. If the rules are not followed, the result could be that no lien right is available and debts go unsecured. And, unsecured debts have a lower chance of getting paid.