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Nevada Notice of Right to Lien & Request for Notice of Completion

By Diane Dennis

In Nevada, when you want lien rights on a project you're working on, if you're not contracted directly with the owner then, per NRS 108.245, you have to do a notice titled "Notice of Right to Lien".

NRS 108.245

1.  Except as otherwise provided in subsection 5, every lien claimant, other than one who performs only labor or is a potential claimant under NRS 608.150, who claims the benefit of NRS 108.221 to 108.246, inclusive, shall, at any time after the first delivery of material or performance of work or services under a contract, deliver in person or by certified mail to the owner of the property a notice of right to lien in substantially the following form:

The What and Why of the Nevada Notice of Right to Lien & Request for Notice of Completion

This notice is often referred to as the Nevada Preliminary Notice of Right to Lien. But the actual title of the form is mandated by Nevada, and it has to be Notice of Right to Lien.

If you're required to do this notice in order to claim lien rights but you don't do the notice, you won't have the right to file a mechanic's lien.

The notice serves to notify the owner of the property that you are present on the job and that you have lien rights should you not get paid. This way the owner can keep track and make sure everyone gets paid.

That's why you don't have lien rights if you don't do the notice of right to lien, because the owner didn't know you were present (and knowing by sight, or chatting with the person, etc. doesn't count - the notice is absolutely required).

The Who, How, and Where of the Notice of Right to Lien

Subcontractors, equipment suppliers, and material suppliers are required to give the Notice of Right to Lien if they wish to protect their lien rights.

The Where

Instead of always trekking to the post office to send your certified mail, get a enough of the various documents required (enough for many, many mailings) and then just mail it from home or the office. Just be sure to keep enough postage on hand.

Prime contractors, and other persons directly contracted with (or directly selling material to), the owner are not required to give the notice.

Subcontractors, equipment suppliers, and material suppliers who give the Notice of Right to Lien to an owner are also required to serve a copy on the prime contractor.

The failure by a subcontractor to deliver the notice to the prime contractor is a ground for disciplinary proceedings against the subcontractor under NRS 624!

It doesn't invalidate the notice to the owner, you'll still have lien rights, but dang, it's no fun getting disciplined!

There doesn't appear to be anything in the laws that gives a deadline to have it to the Prime but the easiest way to do it is all in one fell swoop.

The notice does not have to be verified, sworn to or acknowledged.

When delivering the notice to the owner and to the prime contractor it's required that it be either hand-delivered or sent via certified mail.

If you do it by hand-delivery be sure to have a document for the recipient to sign stating that he/she received the document.

When Does the Notice of Right to Lien Have to be Done?

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The Notice of Right to Lien has to be served *after* you start on the project (or provide services or materials).

But, it only protects you for 31 days prior to the date on the notice, forward.

Meaning, if you don't do the notice until 50 days into the job then you don't have lien rights for the first 19 days you were on the project!

The best thing to do is have that paperwork ready to go by your first day on the job. As soon as you step foot on the job site (or deliver material or provide services) get that notice served.

The Request for Notice of Completion

The owner is required by law to send you a copy of the Notice(s) of Completion if you sent him the Notice of Right to Lien.

You need that information for lien purposes, in case you don't get paid. But most owners don't know that they have that responsibility.

By including the request on your notice you give the owner a heads up. Sure it's not your responsibility but it's a super easy way to ensure that you stay in the loop.

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Diane
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