If a contractor or supplier doesn’t get paid on a construction project, they can file a Mechanic’s Lien on the property to secure payment. This creates a security interest in the property for the unpaid amount due.
Once a construction project is complete and payment has been made in full, Nevada law requires a contractor to provide the owner with “a full and unconditional release of the contractor’s claim for a mechanic’s lien,” as required under NRS 624.870(3).
If, on the other hand, a contractor is not paid for the work done on property by the owner, the contractor must then give notice to the owner that they intend to place a lien on the property. This notice must be delivered to the property owner at least 15 days before filing the lien.
However, there is a time limit to be able to file the lien. A contractor must file the lien in the country recorder’s office where the property is located within 90 days of the end of working on the project.
No later than 75 days
This means the notice of intent must be given no later than 75 days after the end of working on the project or the contractor will be unable to file the lien within the deadline and will be barred from doing so.
Once the Mechanic’s Lien is filed, Nevada law states that enforcement of a Mechanic’s Lien via civil litigation must be initiated within 6 months from the date the lien is filed.
Nevada does not allow for this time limit to be extended and failing to “perfect” the lien – that is, to enforce the lien through an action in civil court - within the time limit makes the lien unenforceable.
To learn more, visit Las Vegas Real Estate Attorneys or call 800-233-8521 for a free phone consultation.