Nevada
Construction Lending State Compliance Library
State statute reference
Last updated April 7, 2023
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Nevada Construction Lien Law
Lien Law Overview
Notice of Right to Lien
Nevada law requires that any time after first providing work, materials or equipment to a project, any potential lien claimant – except one who performs labor only or one who is a prime contractor- must serve both the owner and prime contractor (via personal delivery or certified mail) with a Notice of Right to Lien. Nev. Rev. Stat. Ann. § 108.245(1). This Notice may be served at any time after the first delivery of material or performance of work or services under a contract. A lien claimant who is required to give a notice of right to lien to an owner and complies has a right to lien for materials or equipment furnished or for work or services performed in the 31 days before the date the notice of right to lien is given and for the materials or equipment furnished or for work or services performed anytime thereafter until the completion of the work of improvement. Nev. Rev. Stat. Ann. § 108.245.
Notice of Lien and Notice of Intent to Lien
Even though it isn’t required when first providing work, it is important to note that in order to perfect a mechanics lien, a Notice of Lien, verified by oath, must be recorded in the county recorder’s office where the property is located in accordance with the 90 or 40-day statutory timelines, whichever applies. See Nev. Rev. Stat. Ann. § 108.226(1). In addition, if the project is residential the lien claimant must serve the project owner with a 15-day Notice of Intent to Lien. Nev. Rev. Stat. Ann. § 108.226(6).
In Nevada, there are certain requirements for residential lien claimants that do not apply to commercial lien claimants (e.g. providing a subcontractor’s 15-day Notice of Intent to Lien.
Lien Waivers
Lien Waiver Summary
These statutory lien waiver forms depend upon the exchange of the form for actual payment to satisfy the mechanics lien. See Nevada’s Mechanics and Materialmen’s Law
The lien waiver must comply with the statutory forms provided by law. The lien claimant must execute and deliver a signed, written waiver.
Statutory Form
Required
Notary
Not Required
Electronic Signature
Acceptable
Are title companies required by law to manage construction loan disbursements?
No
Can a mechanics lien have priority over a pre-existing mortgage in Nevada?
Yes, if the deed of trust is recorded after the commencement of construction, which is defined as “the date on which work performed or materials or equipment furnished in connection with a work of improvement is visible from a reasonable inspection of the site”. See Nev. Rev. Stat. Ann. §§ 108.225, 108.22112.
Notices
Notice of Commencement (or similar like event)
Not applicable.
Preliminary Lien Notifications
Notice of Right to Lien
Nevada law requires that any time after first providing work, materials or equipment to a project, any potential lien claimant – except one who performs labor only or one who is a general contractor- must serve both the owner and prime contractor (via personal delivery or certified mail) with a Notice of Right to Lien. Nev. Rev. Stat. Ann. § 108.245(1). This Notice may be served at any time after the first delivery of material or performance of work or services under a contract. A lien claimant who is required to give a notice of right to lien to an owner and complies has a right to lien for materials or equipment furnished or for work or services performed in the 31 days before the date the notice of right to lien is given and for the materials or equipment furnished or for work or services performed anytime thereafter until the completion of the work of improvement. Nev. Rev. Stat. Ann. § 108.245. Therefore, it is a good idea to file a Notice of Right to Lien within 31 days of first furnishing labor and/or materials. A subcontractor’s failure to provide notice to a general contract can result in disciplinary action. Nev. Rev. Stat. Ann. § 108.245(1).
Notice of Lien and Notice of Intent to Lien
In order to perfect a mechanics lien, a Notice of Lien, verified by oath, must be recorded in the county recorder’s office where the property is located in accordance with the 90 or 40-day statutory timelines, whichever applies. See Nev. Rev. Stat. Ann. § 108.226(1). In addition, if the project is residential the lien claimant must serve the project owner with a 15-day Notice of Intent to Lien. Nev. Rev. Stat. Ann. § 108.226(6).
Notice of Completion
Yes, in Nevada, property owners have the option to submit a “Notice of Completion” after the completion of a work of improvement, which can help protect them against mechanics lien claims. This notice can impact the amount of time a contractor has to file a mechanics lien. Property owners should use the notice to protect themselves from liens as well as lenders who want to protect their first lien position.
A notice of completion is not required to be filed and is considered voluntary to protect the owner and lender from liens by cutting the time in ½ that a party has to file a line in Nevada. It reduces the time from 90 days to 45 days.
The owner, owner’s agent, or general contractor can file the document.
It’s important to know that once the document is filed, the party who filed it has 10 days after the notice was recorded to send a copy of the notice by certified mail to all parties that have a direct contract with the owner and all potential lien claimants (parties that hae provided notices). If this step is not completed it renders the notice of completion ineffective.
The detailed statute is provided below for more detail on how to file the notice of completion.
Nev. Rev. Stat. Ann. § 108.228.
Notice of Completion
- The owner may record a notice of completion after the completion of the work of improvement.
- The notice of completion must be recorded in the office of the county recorder of the county where the property is located and must set forth:
- The date of completion of the work of improvement.
- The owner’s name or owners’ names, as the case may be, the address of the owner or addresses of the owners, as the case may be, and the nature of the title, if any, of the person signing the notice.
- A description of the property sufficient for identification.
- The name of the prime contractor or names of the prime contractors, if any.
- The notice must be verified by the owner or by some other person on the owner’s behalf. The notice need not be acknowledged to be recorded.
- Upon recording the notice pursuant to this section, the owner shall, within 10 days after the notice is recorded, deliver a copy of the notice by certified mail, to:
- Each prime contractor with whom the owner contracted for all or part of the work of improvement.
- Each potential lien claimant who, before the notice was recorded pursuant to this section, either submitted a request to the owner to receive the notice or delivered a preliminary notice of right to lien pursuant to NRS 108.245.
- The failure of the owner to deliver a copy of the notice of completion in the time and manner provided in this section renders the notice of completion ineffective with respect to each prime contractor and lien claimant to whom a copy was required to be delivered pursuant to subsection 4.
When Must it be Filed
At any time after completion of the work of improvement, which can be one of three events:
- The occupation or use by the owner (or owner’s agent) and only then if all work has stopped,
- The acceptance by the owner (or owner’s agent) of the work of improvement, and only then if all work has stopped, or,
- 30 consecutive days after all work has stopped, but only IF a notice of completion is timely recorded and served and the work is not resumed under the same contract. Nev. Rev. Stat. Ann. §§ 108.228, 108.22116
Other Notices
The Nevada Mechanics and Materialman’s Lien Law has several notices.
- Notice of Right to Lien. Nevada law requires that any time after first providing work, materials or equipment to a project, any potential lien claimant – except one who performs labor only or one who is a general contractor- must serve both the owner and prime contractor (via personal delivery or certified mail) with a Notice of Right to Lien. Nev. Rev. Stat. Ann. § 108.245(1). This Notice may be served at any time after the first delivery of material or performance of work or services under a contract. A lien claimant who is required to give a notice of right to lien to an owner and complies has a right to lien for materials or equipment furnished or for work or services performed in the 31 days before the date the notice of right to lien is given and for the materials or equipment furnished or for work or services performed anytime thereafter until the completion of the work of improvement. Nev. Rev. Stat. Ann. § 108.245. Therefore, it is a good idea to file a Notice of Right to Lien within 31 days of first furnishing labor and/or materials. A subcontractor’s failure to provide notice to a general contract can result in disciplinary action. Nev. Rev. Stat. Ann. § 108.245(1).
- Notice of Lien and Notice of Intent to Lien. In order to perfect a mechanics lien, a Notice of Lien, verified by oath, must be recorded in the county recorder’s office where the property is located in accordance with the 90 or 40-day statutory timelines, whichever applies. See Nev. Rev. Stat. Ann. § 108.226(1). In addition, if the project is residential the lien claimant must serve the project owner with a 15-day Notice of Intent to Lien. Nev. Rev. Stat. Ann. § 108.226(6).
- Notice of Non-responsiblity. The interest of a disinterested owner will not be subject to a notice of lien if the disinterested owner, within 3 days after he or she first obtains knowledge of the construction, alteration or repair, or the intended construction, alteration or repair, gives notice that he or she will not be responsible for the improvement by recording a Notice of Nonresponsibility. See Nev. Rev. Stat. Ann. §108.234.
- Notice of Waiver of Owner’s Rights. All owners of the property, individually or collectively, record a written notice of waiver of the owners’ rights set forth in NRS 108.234 with the county recorder of the county where the property is located before the commencement of construction of the work of improvement. Such a written notice of waiver may be with respect to one or more works of improvement as described in the written notice of waiver. Nev. Rev. Stat. Ann. § 108.2405.
- Notice of Recording of Surety Bond. If a lawsuit action by a lien claimant to foreclose upon a lien has been brought after the recording of a surety bond, a notice of the surety bond starts a 9-month timeline for a lien claimant to bring an action against the principal and the surety. Nev. Rev. Stat. Ann. §108.2421.
- Notice of Assignment of Lien. In order for the recordation of an assignment of a lien to be effective, an assignee must give to an owner a written Notice of Assignment. The notice will be sufficient if delivered in person or mailed by certified mail to the owner. After such notice, the assignee may perfect the lien in the assignee’s own name. Nev. Rev. Stat. Ann. §108.243.
- Release of Notice of Lien. Upon payment (or for any other reason), a lien claimant can release a notice of lien voluntarily by preparing a notice of discharge or release of lien and recording it in the county where the notice of lien was recorded. Nev. Rev. Stat. Ann. § 108.2437(1).
- Notice of Claim. Any potential claimant to indebtedness for labor must, within 90 days after receiving the written request from the original contractor, subcontractor or other contractor submit to the requester a written Notice of Claim in strict compliance with the statute. See NRS 608.152.
- Notice of Termination Nev. Rev. Stat. Ann. § 624.626 sets forth the requirements for a written notice of termination when work stops on a project. If a higher-tiered contractor fails to timely make payment to a lower-tiered contractor, the lower-tiered contractor may stop work by providing a written Notice to Stop Work at least 10 days before stopping work. If payment is received within the ten (10) day timeframe the lower-tiered contractor must resume work. If payment is not received within the ten (10) day timeframe, then a lower-tiered contractor may terminate its contract by giving a written Notice of Termination to the higher-tiered contractor after stopping work but at least 15 days before the termination of the agreement. Note: The 9th Circuit overturned this statute as unconstitutional when it conflicted with Federal law in a case involving McCarran International Airport. See Erection Co. v. Archer Western Contrs., LLC, 2014 U.S. Dist. LEXIS 36180 (March 17, 2014). To date, the legislature has not made any additional changes to the statute such that it still may apply to construction contracts governed by Nevada state law.
Title
Nevada uses ALTA title commitments that allow for the Construction Loan Update Endorsement, which is used when the lender requests endorsements as additional disbursements are made. It gives coverage up-to the new outstanding mortgage balance and shows whether any other instruments have been filed and recorded since the last title update. The endorsement also ensures the priority of the insured mortgage over instruments that are not specifically listed in the endorsement. Like title companies in other states, since the title company has a stake in the disbursements, you may find that they exercise some due diligence relating to construction draws which will vary based on the title company.
Contractor Licensing
Contractor Requirement: License always required.
Subcontractor Requirement: Subs must be licensed.
Contractor Warranties: Implied warranty for a period of regardless of type of defect. 6 year statute of limitation.
Have Questions?
Reach out if you have any comments or questions about our state resources.
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