Nevada Notice of Right to Lien

Introduction

Key Things to Know

1. 1

   NRS 108.245(2) states that a Nevada notice of right to lien does not constitute a lien or give actual or constructive notice of a lien for any purpose, and the prescribed form repeats that to the owner: it is not a notice that the claimant has not been or does not expect to be paid, but a notice required by law that the claimant may at a future date record a notice of lien if it is not paid.

2. 2

   Two deliveries, one form. The notice goes to the owner of the property, and a subcontractor or equipment or material supplier must also send a copy to the prime contractor, which the statute marks for information only.

3. 3

   Both deliveries use the same two methods and no others: in person, or by certified mail. Ordinary mail, fax and email are not among the methods NRS 108.245 names.

4. 4

   Nevada prints the form. It is addressed to the owner by name and address, states that the undersigned has supplied materials or equipment or performed work or services as described, carries a general description, identifies the property by description or street address, names the general contractor or subcontractor the claimant contracted under, and is signed by the claimant.

5. 5

   Formalities are deliberately light: NRS 108.245(4) says the notice need not be verified, sworn to or acknowledged. There is no affidavit, no notary and nothing to file, because nothing about this document is recorded.

6. 6

   Three groups owe nothing. A lien claimant who performs only labor is outside the duty, as is a potential claimant under NRS 608.150, and NRS 108.245(5) exempts a prime contractor or other person who contracts directly with an owner or sells materials directly to an owner.

7. 7

   Serving it also puts you on the owner's mailing list. Under NRS 108.228 an owner who files a notice of completion must send a copy by certified mail within 10 days to each potential lien claimant who had delivered a preliminary notice of right to lien, and failing to do so makes that notice of completion ineffective as to that claimant.

Nevada Requirements for Preliminary Notice

• The Owner Gets the Notice, the Prime Contractor Gets a Copy

  NRS 108.245(1) requires delivery to the owner of the property, and requires a subcontractor or equipment or material supplier who gives such a notice also to deliver or send a copy to the prime contractor, for information only. Failing to copy the prime contractor is a ground for disciplinary proceedings under chapter 624 of NRS but does not invalidate the notice to the owner. No construction lender is named as a recipient.

• In Person or Certified Mail, Both Times

  The statute uses the same two methods for the delivery to the owner and for the information copy to the prime contractor: in person, or by certified mail. Ordinary first class mail, fax and email are not among the methods named.

• Thirty One Days of Backward Reach From the Date You Give It

  NRS 108.245(6) gives a claimant who serves the notice a right to lien for materials or equipment furnished and work or services performed in the 31 days before the date the notice is given, and for everything furnished or performed afterward until the completion of the work of improvement. The notice may be given at any time after first delivery of material or performance of work or services, so there is no forward deadline, only a reach that moves with the date you serve.

• The Prescribed NOTICE OF RIGHT TO LIEN Form

  NRS 108.245(1) prints the form and requires substantial conformity. It is addressed to the owner by name and address, states that the undersigned has supplied materials or equipment or performed work or services as described, carries a general description, identifies the property by property description or street address, names the general contractor or subcontractor the claimant contracted under, carries the statutory sentence explaining that this is not a notice of nonpayment but a notice required by law, and is signed by the claimant.

• Labor Only and Direct-to-Owner Parties Are Exempt

  The duty in NRS 108.245(1) reaches every lien claimant other than one who performs only labor or is a potential claimant under NRS 608.150. NRS 108.245(5) further exempts a prime contractor or other person who contracts directly with an owner or sells materials directly to an owner. Subsection 3 also excepts labor from the claims that cannot be perfected without the notice.

• No Notary, No Filing, Not a Lien

  NRS 108.245(4) provides that the notice need not be verified, sworn to or acknowledged, and NRS 108.245(2) provides that such a notice does not constitute a lien or give actual or constructive notice of a lien for any purpose. Nothing is filed and nothing touches the title. With no prescribed proof of service, the certified mail record and a copy of the notice as sent are the evidence of the date it was given.

• Omission Blocks Everything Except Labor

  NRS 108.245(3) provides that no lien for materials or equipment furnished or for work or services performed, except labor, may be perfected or enforced pursuant to NRS 108.221 to 108.246 unless the notice has been given. NRS 108.2453 prohibits waiver or modification of those rights and obligations, and NRS 108.2457 voids a contract term that attempts to waive or impair a contractor, subcontractor or supplier lien right.

• The Prime Contractor Must Warn the Owner First

  NRS 108.246 requires each prime contractor, before execution of a contract for construction, to inform the owner of the provisions of NRS 108.245 in substantially the form the statute prints, telling the owner the rules exist for its protection from hidden liens and that it may receive such notices. The prime contractor must also give a copy of that information to each subcontractor on the project, and failing either is a ground for disciplinary proceedings under chapter 624 of NRS. Serving your own notice also entitles you under NRS 108.228 to a copy of the owner's notice of completion within 10 days.