5 essential things to know about Nevada mechanics liens
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.
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.
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.
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.
Notices are required in Nevada. Get yours today
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.
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.