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MECHANIC’S LIEN, MATERIALMAN’S LIEN, CONSTRUCTION LIEN - WHAT DO THEY MEAN TO ME?
Nevada provides a mechanism for general contractors and subcontractors to file a lien against real property in order to secure payment for materials provided or services rendered to a property owner. These liens may variously be referred to as a “construction lien,” “mechanic’s lien,” or a “materialman’s lien.” The intent is that those owners whose real property has been improved should pay for the labor and materials delivered and incorporated into the real property.
Any person who provides work, material or equipment with a value in excess of $500 that is used in improving, altering, constructing or repairing a property is entitled to file a lien to secure payment from the owner. A lien may be recorded against the property where the improvements, work, materials or equipment were provided. If the work of improvement was performed under a contract, the lien may be in the amount of the unpaid balance; if no specific price has been agreed upon between the parties, the fair market value of that work, materials or equipment determines the amount of the lien.
Generally, in order to properly secure a lien, a Notice of Right to Lien must issue within 31 days after the first delivery of material or performance of work or services under the contract. This Notice of Right to Lien is intended to provide notice to the property owner(s) that the claimant of the lien may, in the future, record a lien for payment for materials, goods, services and equipment. However, a general contractor who contracts directly with the property owner need not provide a Notice of Right to Lien - the contract itself serves as a Notice of Right to Lien. This Notice, although it does not create any actual legal encumbrance, must be served personally or by certified mail to the property owner. Failure to provide a Notice of Right to Lien to the real property owner(s) could prove fatal to any subsequent lien attempt.
Once a claimant has served a Notice of Right to Lien, it is entitled to record a Notice of Lien if there has been a default in payment. The Notice of Lien announces to the World that the claimant has a claim lodged against the real property for monies due. This Notice must be recorded in Recorders Office for the County where the property is located. The Notice of Lien must conform with specific requirements set forth in NRS 108.226. The timing of the Notice of Lien is controlled by NRS 108.226(1)(a) and (b). For residential construction, the owners are entitled to additional notice in the form of a 15-Day Notice of Intent to Lien.
As recognized by the Nevada Supreme Court, a mechanic’s lien is a “creature of statute” and “substantial compliance” is required in order to take advantage of those statutory provisions. If you may be entitled to a lien for work, goods, services or materials you provided, our Firm can assist you in assuring that the lien process is properly followed. On the other hand, if you have received a Notice of Lien or a lien has been filed against your property, our Firm can assist you in determining whether the lien recorded against your property was properly undertaken and whether it is valid.
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