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Home>Levelset Community>Legal Help>Is there any way an owner of a residential property can be compensated or recoup all the additional fees, penalties, mortgage payments and default interest etc directly related to the delay incurred because of the invalid lien recorded by the prime contractor?

Is there any way an owner of a residential property can be compensated or recoup all the additional fees, penalties, mortgage payments and default interest etc directly related to the delay incurred because of the invalid lien recorded by the prime contractor?

NevadaPayment Disputes

Our prime contractor filed a lien against our property for monies owed for work done on the property. There are so many issues, errors and failures to comply with statutory requirements with filing a mechanics lien that there is just no way the lien could b found valid after challenging it. Because of the lien being in place it has drawn out the closing process ridiculously which in turn is costing us hundreds of dollars per day as well as mortgage and default interest, fees and charges, penalties etc that we wouldn’t have had to pay if he hadn’t filed the invalid lien. I must add that I personally bought the fact that it was invalid and instead of telling me that he had already filed it he just never responded and that was only based on the overly exaggerated amount of the lien because he included all these no lienable amounts like and investment portion, interest, consequential loss etc etc So I just want to know if that sort of recovery is possible in Nevada and if so what motion is required to be filed with courts to start the process? Thanks

1 reply

Jul 10, 2018
I'm really sorry to hear about that. First, it's worth noting that not all mistakes on a lien filing will give rise to penalties. Particularly, honest mistakes may invalidate a lien claim without triggering penalties. Of course, when lien is purposefully exaggerated or a claimant knowingly includes false information, penalties can come into play. Plus, Nevada specifically prohibits consequential damages. Anyway, in Nevada, NRS § 108.226(3) provides for such penalties. Specifically, "It is unlawful for a person knowingly to make a false statement in or relating to the recording of a notice of lien pursuant to the provisions of this section. A person who violates this subsection is guilty of a gross misdemeanor and shall be punished by a fine of not less than $5,000 nor more than $10,000." Other penalties may could also apply as a result of a fraudulent filing, as well. Finally, a property owner could likely also sue for damages incurred as a result of a fraudulent filing. If a property owner believes a mechanics lien claim is fraudulent, exaggeratory, and/or malicious, it's likely a good idea to consult a local construction or real estate attorney about the matter - they'll be able to review the relevant circumstances and documentation then advise on options for moving forward.
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