Filing a mechanics lien in Nevada involves more than just recording the actual mechanics lien document. There are two pre-lien notices to submit, a statutory form to fill out, and multiple deadlines to keep track of.
This guide will guide you through the step-by-step process in successfully filing a mechanics lien or Notice of Lien in Nevada, from ensuring that your lien rights are protected to enforcing it before it expires.
- Serve a Notice of Right to Lien
- Serve a Notice of Intent to Lien
- How to File a Mechanics Lien in Nevada: 4 Basic Steps
- 3 Common Mistakes When Filing a Mechanics Lien in Nevada
Serve a Notice of Right to Lien
Nevada is one of the states that require the service of a preliminary notice called The Notice of Right to Lien before a valid mechanics lien may be recorded.
Note that this is a required step, which means that if you fail to serve the Notice of Right to Lien in Nevada, you will lose your lien rights and your mechanics lien will be declared null and void.
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Who is required to serve the Notice of Right to Lien?
Serving this notice is required for all construction participants who DO NOT have direct contact with the property owner. Prime contractors and material suppliers who directly sell to the property owner are NOT required to serve the Notice of Right to Lien in Nevada.
What should be on the Notice of Right to Lien form?
According to Nevada Statute NRS 108.245(1), the Notice of Right to Lien must be substantially in the following form:
Who should I send the Notice of Right to Lien to?
The Notice of Right to Lien must be sent by personal delivery or certified mail to the property owner and the prime contractor. This notice must be sent within 31 days after first furnishing labor or materials to the project.
Serve a Notice of Intent to Lien
The Notice of Intent to Lien is another pre-lien notice that must be filed in Nevada.
Who is required to serve the Notice of Intent to Lien?
All construction participants working on residential projects, whether on single- or multi-family homes, are required to serve the Notice of Intent to Lien. Those who are working in other non-residential sectors are not required to do so, but they still may file a Notice of Intent to Lien.
Who should I send the Notice of Intent to Lien to?
The Notice of Right to Lien must be sent by personal delivery or certified mail to the debtor, property owner and the prime contractor. This notice must be sent 15 days before recording the mechanics lien in Nevada.
How to File a Mechanics Lien in Nevada: 4 Basic Steps
- Prepare the mechanics lien form
- Record the mechanics lien
- Serve a copy of the mechanics lien to the property owner
- Enforce the mechanics lien
1. Prepare the Nevada mechanics lien form
Nevada is one of the few states that require mechanics lien claimants to use a statutory form. This means that you must use a specific form when you record your mechanics lien.
The mechanics lien or Notice of Lien in Nevada must contain the following information, pursuant to Nevada statute NRS 108.226(2):
(a) A statement of the lienable amount after deducting all just credits and offsets.
(b) The name of the owner if known.
(c) The name of the person by whom the lien claimant was employed or to whom the lien claimant furnished the material or equipment.
(d) A brief statement of the terms of payment of the contract.
(e) A description of the property to be charged with the notice of lien sufficient for identification.
The mechanics lien must also be in the following form for it to be considered valid:
Must a mechanics lien in Nevada be notarized?
Yes, the mechanics lien in Nevada has to be notarized for it to be considered valid. The statutory form also requires the signature of the notary office representative, so make sure that your document is notarized before recording it.
2. Record the mechanics lien in Nevada
Once your mechanics lien document is ready, you may now record it.
Where do I file the mechanics lien in Nevada?
The mechanics lien is filed in the local county recorder’s office where the project is located. You may either bring the mechanics lien form in person or send the form via courier. If you are sending the mechanics lien via mail, make sure that you include the required fees in the package.
When should I file the mechanics lien in Nevada?
The mechanics lien must be filed within 90 days after you last furnished labor or materials to the project or within 40 days after the Notice of Completion has been filed, whichever is later.
If you fail to file your mechanics liens before the 90-day or the 40-day window, your mechanics lien will be declared null and void.
3. Serve a copy of the mechanics lien to the property owner
Once you have successfully recorded your mechanics lien, you must serve a copy of the lien to the property owner by personal delivery or by certified mail with return receipt requested.
If the address of owner is not known, NRS 108.227(1c) allows you to serve a copy of the lien by:
(1) Fixing a copy of the notice of lien in a conspicuous place on the property;
(2) Delivering a copy of the notice of lien to a person there residing, if such a person can be found; and
(3) Mailing a copy of the notice of lien addressed to the owner at:
(I) The place where the property is located;
(II) The address of the owner as identified in the deed;
(III) The address identified in the records of the office of the county assessor; or
(IV) The address identified in the records of the county recorder of the county in which the property is located.
Sending a copy of the mechanics lien to the owner must be done within 30 days after recording the lien.
What if there are multiple owners?
It is highly advised that you try to send a copy of the mechanics lien to all the owners. However, the mechanics lien will still be valid so long as you serve it to at least one of the property owners.
4. Enforce the mechanics lien in Nevada
The mechanics lien is only enforceable within 6 months after the last day of furnishing labor or materials to the project. This means that if you don’t get paid within this time frame, the mechanics lien will eventually expire and will lose its hold over the property.
You must therefore enforce the lien before the 6-month window ends by initiating a foreclosure lawsuit. Note that you will have to serve a Notice of Foreclosure of the Notice of Lien to all other claimants that have recorded a mechanics lien against the same property.
3 Common Mistakes When Filing a Mechanics Lien in Nevada
1. Missing the deadline to file the mechanics lien
Lien-related deadlines are strictly enforced in Nevada.
Some claimants make the mistake of assuming that filing the 15-Day Notice of Intent to Lien close the mechanics lien deadline will extend the deadline for filing the actual mechanics lien. Note that the Notice of Intent to Lien only extends the mechanics lien deadline for residential project.
Generally, it is considered best practice to not wait until the last minute before filing or serving any of these important lien documents.
2. Not using the statutory form
Nevada requires its lien claimants to use a statutory form with minimal revisions, preferably exactly how it is written and formatted in the state rules. Note that you are not allowed to use your customized forms and you must include all the information as required by the state. Otherwise, your mechanics lien may be considered null and void.
Also note that Nevada penalizes frivolous lien claims. If the court decides that your mechanics lien has falsified information or has no sound basis, you may have to pay a fine and other extra fees.
3. Claiming a frivolous amount on the mechanics lien
The amount owed is one of the most commonly “padded” information on the mechanics lien. Note that Nevada will penalize a party who claims a frivolous amount, so make sure that the value you are claiming are true to what you are actually owed.
Do not include attorney fees and other lien-related expenses when calculating this amount. Always keep in mind that the mechanics lien is filed so you get paid for the services you have provided, so stick with the amount related to your participation in the project.