September 15, 2006

InBusiness Las Vegas
Q&A September 15, 2006
Pezzillo Robinson PC
Brain J. Pezzillo, Esq.

Q: What must I do to protect my mechanic's lien rights under Nevada Law?

A: Mechanic's Liens are a long established method of ensuring that those companies and individuals who are responsible for the building of a project are compensated for their work. Mechanic's Liens are the creation of statutes in Nevada and those statutes set forth certain requirements which must be followed.

First, mechanic's liens may only be used on private works of improvement, i.e.- those which are not owned by the government or a governmental entity. In order insure that your mechanic's lien rights are protected you must send a "Notice of Right to Lien" also known as a "Preliminary Notice" within 31 days of first supplying labor or materials to the project. The Preliminary Notice must be sent to the owner with an informational copy provided to the prime contractor on the project. Failure to provide a copy of the Preliminary Notice to the prime contractor may result in disciplinary action being taken by the Nevada State Contractor's Board.

The mechanic's lien itself must be recorded in the county where the project is located within 1) 90 days of the last day upon which labor or materials are supplied to the project; 2) 90 days of the completion of the project; or, 3) 40 days of recordation of a valid Notice of Completion, whichever is later.

Once recorded, a mechanic's lien must be foreclosed upon within 6 months or it will expire and become of no force and effect.

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