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Bond off a lien notice in Nevada

Sorry this is going to be long! We are a supplier to a general contactor for a project in Nevada. This is one of our best customers we've been doing business with over 30 years. We supplied a canopy from a vendor in Texas and when it arrived at the jobsite is wasn't fabricate to match the construction drawings supplied to them by us. The general contactor had to hire a local company to modify the canopy so that it could be installed properly. The send us payment minus the backcharge for labor. We in turned paid our supplier minus the backcharge. Our supplier didn't agree and has filed a lien on the property. We did not or plan on filing a lien on this project. We informed the GC about the lien and they requested that we bond off the claim. I'm not sure we can do that as a supplier. We have never had to supply a payment bond before so how would be bond off a claim. If I am reading your website correctly only the GC or Owner can bond off a claim. Is that correct?

1 reply

Aug 28, 2020

Who can bond off a lien in Nevada?

The statutes governing the bonding-off process in Nevada are found under NRS §108.2413 to §108.2425. Under these statutes, "To obtain the release of a lien for which a notice of lien has been recorded against the property, the principal and a surety must execute a surety bond..." Furthermore, "principal" is defined as "the debtor of the lien claimant or a party in interest in the property subject to the lien whose name and signature appear as principal on a surety bond." Since you hired the supplier/lien claimant, you would be a "debtor of the lien claimant" for the purposes of the statute.

How to bond off a Nevada mechanics lien

As far as how to bond-off a NV mechanics lien. You'll first need to secure a bond from a surety company (Surety One is the first that comes to mind) for 1.5 times the amount of the lien claim. Once secured you'll need to fill out, notarize, and file a notice of bond release with the county recorder's office where the claim was filed. The form requirements can be found under §108.2415. Lastly, once filed with the recorder's office, a copy of the recorded notice (i.e. stamped by the clerk) needs to be personally served by a sheriff, deputy sheriff, or any person at least 18 years old who is not party to the action on the claimant (see NV R. Civ. P. 4(c)) Good luck!

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