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Does entering into a new contract with a new owner impact our lien rights for services provided to our previous client?

NevadaMechanics Lien

I asked this question last week, but my boss wants me to reword the question: Developer A (our original client) was in escrow on property and owes us $57,000+ for services rendered. Developer A fell out of escrow and now Developer B is in escrow and is engaging our services. Does contracting with Developer B have any impact on our lien rights for services provided to Developer A? Does providing services to Developer B maintain our lien rights for the $57,000+ owed by Developer A, or does the right to file lien clock stop at last hour of service provided to Developer A?

1 reply

Apr 9, 2018

Apologies for any misunderstanding! That's a great question. If the work provided has been pursuant to one overall scheme of improvement and if the property did not actually change hands, it's likely that only one work of improvement has been undertaken under § 108.22188(1) of the Nevada mechanics lien statute. If that's the case, only lien claim would likely be necessary - even where multiple contracts for work might exist. Granted, a number of variables could come into play, and it would be hard to provide a conclusive answer without intimate knowledge of all surrounding circumstances - including the contracts entered into for the work of improvement. Unfortunately, since there are so many moving parts, the best bet here may be to consult with a local construction attorney who can assess all of the relevant circumstances and documentation.

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