6.2 Notice of Right to Lien (31-Day Coverage), Notice of Nonresponsibility & 15-Day Notice of Intent to Lien

Pre-Lien Notices in Nevada

Owners usually contract only with a prime contractor and may not know who else is working on their property. Nevada's lien law uses notices to prevent "hidden liens":

1. Notice of Right to Lien (NRS 108.245): Tells the owner early in the job that a remote party is supplying the project.
2. Notice of Nonresponsibility (NRS 108.234): Lets an owner who did not order the work protect its interest.
3. 15-Day Notice of Intent to Lien (NRS 108.226(6)): A last warning before a lien is recorded on a residential project.

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Notice of Right to Lien (NRS 108.245)

Who Must Give It

Every lien claimant who wants the benefit of the lien law must give the notice, except:

• A person who performs only labor;
• A potential claimant under NRS 608.150, such as a trust fund claiming unpaid labor; and
• A prime contractor or anyone else who contracts directly with the owner or sells materials directly to the owner (NRS 108.245(5)).

So first-tier and lower-tier subcontractors, suppliers to contractors, and equipment lessors must give it.

Consequence of Not Giving It

No lien for materials or equipment furnished, or for work or services performed (except labor), may be perfected or enforced unless the notice has been given (NRS 108.245(3)).

Timing: The 31-Day Look-Back (NRS 108.245(6))

The notice may be given at any time after the first delivery of material or performance of work. A claimant that gives it has lien rights for everything furnished in the 31 days before the notice is given, and everything afterward until the work of improvement is completed.

• Given Within 31 Days of First Delivery: The entire job is covered.
• Given Late: Coverage reaches back only 31 days. Earlier work is outside the lien, although the contract claim remains.

Example: first delivery April 1; notice given June 1 (61 days later)

April 1 ........ May 1 ........ June 1 ..................... completion
|-- not lienable --|-- 31-day look-back --|-- covered from notice onward --|

Form, Delivery and Effect

• Statutory Form: The notice identifies the owner, describes the materials, equipment, work or services, identifies the property, and names the general contractor or subcontractor the claimant contracted with. It states that it is not a notice of nonpayment, but a notice required by law that the claimant may later record a lien if not paid.
• Delivery: In person or by certified mail to the owner. A subcontractor or supplier must also deliver or mail a copy to the prime contractor for information only. Failing to send that copy is a ground for discipline under Chapter 624 but does not invalidate the notice to the owner.
• No Formalities: The notice need not be verified, sworn to or acknowledged.
• Not a Lien: The notice is not a lien and gives no notice of a lien (NRS 108.245(2)). The Board's homeowner lien form makes the same point (NAC 624.693).

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Notice of Nonresponsibility (NRS 108.234)

The General Rule

Every improvement is deemed made at the instance of each owner with an interest in the property, so every owner's interest is subject to recorded liens (NRS 108.234(1)).

The Disinterested Owner Exception

A disinterested owner is one that did not contract for or cause the work, directly or through an agent, and did not record a waiver under NRS 108.2405. Its interest is not subject to a lien if, within 3 days after it first learns of the work or intended work, it records a notice of nonresponsibility with the county recorder.

• Lessor Timing: A lessor's notice is timely if recorded within 3 days after the lease takes effect or by the time all parties sign the lease, whichever is first. An optionor has 3 days after the option is exercised in writing.
• Contents: The names and addresses of the disinterested owner and the person causing the work; the location, address and legal description; the nature of the owner's interest; the date the owner first learned of the work; and whether the lessee was told to comply with NRS 108.2403.
• Service by a Lessor: By personal delivery or certified mail on the lessee within 10 days after recording, and on the prime contractor within 10 days after the lessee signs the prime contract.
• Prime Contractor's Duties: The prime contractor must post a copy conspicuously on the property within 3 days after receiving it. It must also serve a copy on each claimant that gave it a notice of right to lien, within 10 days after receiving the nonresponsibility notice or the notice of right to lien, whichever is later.
• Not Available: An owner that does not comply cannot claim its interest is immune. A lessor whose lessee fails to post security under NRS 108.2403 and 108.2407 is not a disinterested owner.

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15-Day Notice of Intent to Lien (NRS 108.226(6))

When It Is Required

If the work of improvement involves the construction, alteration or repair of single-family or multifamily residences (including apartment houses), every lien claimant except laborers must serve a 15-day notice of intent to lien before recording a notice of lien. It does not apply to nonresidential projects (NRS 108.226(7)).

Requirements

• Contents: Substantially the same information as the notice of lien.
• Recipients: Both the owner and the reputed prime contractor.
• Delivery: By personal delivery or certified mail.
• Timing: At least 15 days before the notice of lien is recorded. Serving it extends the time for recording the lien by 15 days.
• Consequence: A lien for materials or equipment on a residential project may not be perfected or enforced unless the owner received the notice.

Residential project, claimant unpaid
   |
   +--> Serve 15-day notice of intent to lien on owner AND reputed prime contractor
   |
   +--> Wait at least 15 days
   |
   +--> Record notice of lien (deadline extended by 15 days)

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Notice Comparison