If you want to pursue payment on a Nevada construction project through a mechanics lien, this step-by-step guide will give you information that lets you know how to go about it.
Before taking the step of filing a mechanics lien, it’s important to consider the preliminary notice and timing requirements that must be met prior to filing a valid mechanics lien in Nevada.
Filing a lien by yourself can be a complicated and time-consuming task, but if you’re ready and willing to go it alone, just follow the steps below to file a mechanics lien on a construction project in Nevada.
Make Sure Your Nevada Mechanics Lien Has the Required Information
It is critical to make sure a mechanics lien is complete, and contains all of the required information. Since mechanics liens provide the claimant with an interest in somebody else’s property, strict compliance with the legal requirements is a must. These legal requirements include preliminary notice and timing requirements, and also include specific content requirements. Failing to include certain specific information on the lien claim is more than just a small problem – it can invalidate the entire lien.
A Nevada mechanics liens must contain the following information:
1) A statement of the lienable amount after deducting all just credits and offsets;
2) The name of the owner if known;
3) The name of the person by whom the lien claimant was employed or to whom the lien claimant furnished the material or equipment;
4) A brief statement of the terms of payment of the contract;
5) A description of the property to be charged with the notice of lien sufficient for identification;
6) The notice of lien must be verified by the oath of the lien claimant or some other person. The notice of lien need not be acknowledged to be recorded
Special Note Regarding Form of Mechanics Lien
Not only does Nevada require certain information to be contained on the lien claim, Nevada statutes also specifically set forth an acceptable form for the lien claim itself. While following the statutory form verbatim is likely not required to claim a valid lien, the statute requires that a notice of lien must be substantially in the following form:
NOTICE OF LIEN
The undersigned claims a lien upon the property described in this notice for work, materials or equipment furnished or to be furnished for the improvement of the property:
1. The amount of the original contract is: $
2. The total amount of all additional or changed work, materials and equipment, if any, is: $
3. The total amount of all payments received to date is: $
4. The amount of the lien, after deducting all just credits and offsets, is: $
5. The name of the owner, if known, of the property is:
6. The name of the person by whom the lien claimant was employed or to whom the lien claimant furnished or agreed to furnish work, materials or equipment is:
7. A brief statement of the terms of payment of the lien claimant’s contract is:
8. A description of the property to be charged with the lien is:
(Print Name of Lien Claimant)
State of _____________
County of ____________
____________ (print name), being first duly sworn on oath according to law, deposes and says:
I have read the foregoing Notice of Lien, know the contents thereof and state that the same is true of my own personal knowledge, except those matters stated upon information and belief, and, as to those matters, I believe them to be true.
(Authorized Signature of Lien Claimant)
Subscribed and sworn to before me
this ______ day of the month of ________ of the year _______.
How to File a Nevada Mechanics Lien
Now it’s time to get your Nevada mechanics lien filed in the office of the county recorder of the county where the property or some part thereof is located.
- Prepare lien form, taking care to include the necessary information as set forth above, and sign and swear to contents of the document in front of a notary – and have the notary notarize the lien claim. NOTE that: ” The notice of lien must be verified by the oath of the lien claimant or some other person. The notice of lien need not be acknowledged to be recorded.”
- Some counties in Nevada allow for mechanics liens to be electronically recorded. If available, and you choose this method, you will need to upload a copy of your lien to the electronic recorder system you will use, and follow the instructions. Be careful to pick the appropriate document type in the particular county.
- If e-recording is not available, or if you do not want to use that option, send the original copy to the office of the county recorder of the county where the property or some part thereof is located.
– The lien may be delivered to the proper register of deeds via mail or FedEx, or personally “walked in” to be recorded (either by you or a courier).
– Make sure to include the proper recording fees with the lien. Lien are often rejected for improper fees (and this can be true even if you provide too much money). Any delay caused by needing to resubmit the lien for recording takes time – and since liens are time sensitive documents, it can possibly result in a missed deadline. Recording fees vary from county to county and can be determined by calling the county recorder, checking on the county recorder’s website, or asking in person if you physically bring the lien for filing. The fees are often set at one amount for the first page with an additional, smaller, amount for each additional page.
– Note that your lien document must also comply with any specific margin requirements that particular county may have, as well as potentially requiring a county-specific cover page – these can also be determined by calling the recorder’s office.
- Note that if you mailed your lien to the county for recording, or sent it via a courier, you must also include a self-addressed stamped envelope with return instructions to receive a copy of the recorded lien for your records and/or to serve the lien on the interested parties.
- Serve a copy of the mechanics lien – see more below.
How to Serve a Nevada Mechanics Lien
Once the lien has been recorded with the appropriate register of deeds, the lien claim still must be served on the property owner in order to be valid.
Nevada requires that, in addition to recording the mechanics lien with the county recorder of the county in which the property is located, a copy of the lien must be served on the owner of the property within 30 days after the recording of the lien. The service may be accomplished by mailing the copy of the lien by certified mail, return receipt requested.
If the lien claimant is not the prime contractor, a copy of the lien must also be served on the prime contractor. Failure to serve the lien on the prime contractor, as well, may result in disciplinary proceedings against the sub.
Congratulations! Once the lien document has been filed and served – your Nevada mechanics lien is ready to get you paid what you’ve earned. While liens are very powerful, filing the lien may not be the final step before you get paid. Liens may be challenged (even if valid), or even be determined invalid. It’s also possible that you may be forced to enforce your lien claim through a foreclosure action in order to ultimately get paid – which can be a long and expensive process.
Finally, a Nevada mechanics lien stays effective for 6 months from the date labor or materials were last furnished to the project.
Recording a mechanics lien can be a powerful tool in making sure you are paid what you earned. The How-To guide above can empower you to take that step when and if it becomes necessary, and make sure you are treated fairly.