S.B. 370
Senate Bill No. 370–Senator Schneider
March 16, 2001
____________
Referred to Committee on Judiciary
SUMMARY—Makes various changes relating to mechanics’ and materialmen’s liens. (BDR 9‑971)
FISCAL NOTE: Effect on Local Government: No.
~
EXPLANATION
– Matter in bolded italics is new; matter
between brackets [omitted material] is material to be omitted.
Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
AN ACT relating to liens; prohibiting the waiver or modification of rights relating to mechanics’ and materialmen’s liens except under certain circumstances; prohibiting certain provisions in a contract for a work of improvement; making various changes to provisions relating to mechanics’ and materialmen’s liens; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1 Section 1. Chapter 108 of NRS is hereby amended by adding thereto
1-2 the provisions set forth as sections 2 to 26, inclusive, of this act.
1-3 Sec. 2. As used in NRS 108.221 to 108.246, inclusive, and sections 2
1-4 to 26, inclusive, of this act, unless the context otherwise requires, the
1-5 words and terms defined in NRS 108.221 and sections 3 to 24, inclusive,
1-6 of this act have the meanings ascribed to them in those sections.
1-7 Sec. 3. “Agent of the owner” means every architect, builder,
1-8 contractor, engineer, geologist, land surveyor, lessee, miner,
1-9 subcontractor or other person having charge or control of the property,
1-10 improvement or work of improvement of the owner, or any part thereof.
1-11 Sec. 4. “Building” means a primary building or other
1-12 superstructure, together with all garages, outbuildings and other
1-13 structures appurtenant thereto.
1-14 Sec. 5. “Commencement of construction” means the date on which:
1-15 1. Work performed; or
1-16 2. Materials or equipment provided,
1-17 produces visible results which are sufficient to make reasonably apparent
1-18 from an inspection of the site that a work of improvement has
1-19 commenced.
2-1 Sec. 6. “Completion of the work of improvement” means:
2-2 1. The occupation or use by the owner, an agent of the owner or a
2-3 representative of the owner of the work of improvement, accompanied by
2-4 the cessation of all work on the work of improvement;
2-5 2. The acceptance by the owner, an agent of the owner or a
2-6 representative of the owner of the work of improvement, accompanied by
2-7 the cessation of work on the work of improvement; or
2-8 3. The cessation of all work on a work of improvement for 30
2-9 consecutive days.
2-10 Sec. 7. “Contract” means a written or oral agreement, including all
2-11 attachments and amendments thereto, for the provision of work,
2-12 materials or equipment for a work of improvement.
2-13 Sec. 8. “Disinterested owner” means an owner who did not
2-14 personally or through an agent of the owner, directly or indirectly,
2-15 request, require, authorize, consent to, allow or cause an improvement to
2-16 be constructed, altered or repaired upon the property of the owner.
2-17 Sec. 9. “Equipment” means tools, vehicles and machinery used in
2-18 the construction, alteration or repair of an improvement.
2-19 Sec. 10. “Improvement” means the development, enhancement or
2-20 addition to property, by the provision of work, materials or equipment.
2-21 The term includes, without limitation:
2-22 1. A building, railway, tramway, toll road, canal, water ditch, flume,
2-23 aqueduct, reservoir, bridge, fence, street, sidewalk, fixtures or other
2-24 structure or superstructure;
2-25 2. A mine or a shaft, tunnel, adit or other excavation, designed or
2-26 used to prospect, drain or work a mine; or
2-27 3. A system for irrigation, plants, sod or other landscaping.
2-28 Sec. 11. “Lien” means the statutory rights and security interest in
2-29 property or any improvements thereon provided to a lien claimant by
2-30 NRS 108.221 to 108.246, inclusive, and sections 2 to 26, inclusive, of this
2-31 act.
2-32 Sec. 12. “Lienable amount” means the amount of a lien to which a
2-33 lien claimant is entitled pursuant to subsection 1 of NRS 108.222.
2-34 Sec. 13. “Lien claimant” means any person who provides work,
2-35 material or equipment with a value of $500 or more for the improvement
2-36 of the property or to be used in the construction, alteration or repair of
2-37 any improvement who is entitled to a lien on property pursuant to NRS
2-38 108.222. The term includes, without limitation, every architect, artisan,
2-39 builder, contractor, engineer, geologist, laborer, land surveyor, lessor of
2-40 equipment, materialman, miner, subcontractor or other person who
2-41 provides the work, material or equipment.
2-42 Sec. 14. “Material” means the substances used or consumed in the
2-43 improvement of property or the construction, alteration or repair of a
2-44 work of improvement.
2-45 Sec. 15. 1. “Owner” includes:
2-46 (a) The record owner or owners of property or of an improvement to
2-47 the property as evidenced by a conveyance or other instrument which
2-48 transfers that interest to him and is recorded in the office of the county
2-49 recorder in which the improvement or the property is located;
3-1 (b) The reputed owner or owners of the property or of an improvement
3-2 to the property;
3-3 (c) The owner or owners of the property or an improvement to the
3-4 property, as shown on the records of the county assessor for the county
3-5 where the property or improvement is located;
3-6 (d) The person or persons whose names appear as owner of the
3-7 property or an improvement to the property on the building permit; or
3-8 (e) A person who claims an interest in or possesses less than a fee
3-9 simple estate in the property or an improvement to the property.
3-10 2. The term “owner” does not include:
3-11 (a) A mortgagee;
3-12 (b) A trustee or beneficiary of a deed of trust; or
3-13 (c) The owner or holder of a lien encumbering the property or an
3-14 improvement to the property.
3-15 Sec. 16. “Notice of lien” means a notice recorded pursuant to NRS
3-16 108.226 to perfect a lien.
3-17 Sec. 17. “Prevailing lien claimant” means a lien claimant to whom
3-18 an amount is found due by a court on a notice of lien or a claim against
3-19 a surety bond.
3-20 Sec. 18. “Prime contract” means a contract between a prime
3-21 contractor and the owner of property about which the contract relates.
3-22 Sec. 19. “Prime contractor” means a person who contracts with an
3-23 owner of property to provide work, materials or equipment to be used for
3-24 the improvement of the property, or in the construction, alteration or
3-25 repair of a work of improvement.
3-26 Sec. 20. “Principal” means the person whose name appears as
3-27 principal on a surety bond.
3-28 Sec. 21. “Property” means the land, real property or mining claim
3-29 of an owner occupied by an improvement or for which an improvement
3-30 was provided, together with a convenient space on, around and about the
3-31 same, or so much as may be required for the convenient use and
3-32 occupation thereof.
3-33 Sec. 22. “Surety” means a corporation authorized to transact surety
3-34 business in this state pursuant to NRS 679A.030, who issues a surety
3-35 bond, and who has continuously maintained a rating of “A” or better by
3-36 Standard and Poor’s Ratings Services or A.M. Best Company’s ratings
3-37 for at least the 3 years immediately preceding the date of issuance of the
3-38 surety bond pursuant to NRS 108.2413 to 108.2425, inclusive.
3-39 Sec. 23. “Surety bond” means a bond issued by a surety for the
3-40 release of a notice of lien pursuant to NRS 108.2413 to 108.2425,
3-41 inclusive.
3-42 Sec. 24. “Work” means the labor and services provided for a work
3-43 of improvement, whether completed or partially completed, and includes
3-44 all labor and services provided by an architect, artisan, builder,
3-45 contractor, engineer, geologist, laborer, land surveyor, operator of
3-46 equipment, miner, subcontractor or other person providing labor or
3-47 services for the work of improvement.
4-1 Sec. 25. 1. Except as otherwise provided in NRS 108.221 to
4-2 108.246, inclusive, and sections 2 to 26, inclusive, of this act, a person
4-3 may not waive or modify a right, obligation or liability set forth in the
4-4 provisions of NRS 108.221 to 108.246, inclusive, and sections 2 to 26,
4-5 inclusive, of this act.
4-6 2. A condition, stipulation or provision in a contract or other
4-7 agreement for the improvement of property or for the construction,
4-8 alteration or repair of a work of improvement in this state which attempts
4-9 to do any of the following is void:
4-10 (a) Require a lien claimant to waive rights provided by law to lien
4-11 claimants or to limit the rights provided to lien claimants, other than as
4-12 expressly provided in NRS 108.221 to 108.246, inclusive, and sections 2
4-13 to 26, inclusive, of this act;
4-14 (b) Relieve a person of an obligation or liability imposed by the
4-15 provisions of NRS 108.221 to 108.246, inclusive, and sections 2 to 26,
4-16 inclusive, of this act;
4-17 (c) Make the contract or other agreement subject to the laws of a state
4-18 other than this state;
4-19 (d) Require any litigation, arbitration or other process for dispute
4-20 resolution on disputes arising out of the contract or other agreement to
4-21 occur in a state other than this state; or
4-22 (e) Require a contractor or subcontractor to limit or waive a claim he
4-23 may otherwise possess for delay damages or an extension of time for
4-24 delays incurred, for any delay which was unreasonable under the
4-25 circumstances, not within the contemplation of the parties at the time the
4-26 contract was entered into, and for which he is not responsible.
4-27 Sec. 26. 1. Any term of a contract that attempts to waive or impair
4-28 the lien rights of a contractor, subcontractor or supplier is void. An
4-29 owner, contractor or subcontractor by any term of a contract, or
4-30 otherwise, may not obtain the waiver of, or impair the lien rights of, a
4-31 contractor, subcontractor or supplier, except as provided in this section.
4-32 Any written consent given by any lien claimant to waive or limit his lien
4-33 rights is unenforceable unless the lien claimant executes and delivers a
4-34 waiver and release in the form set forth in this section and the form is
4-35 signed by the lien claimant or his authorized agent, and, in the case of a
4-36 conditional waiver and release, if the lien claimant receives payment of
4-37 the amount identified in the conditional waiver and release.
4-38 2. An oral or written statement purporting to waive, release or
4-39 otherwise adversely affect the rights of a lien claimant is not enforceable
4-40 and does not create any estoppel or impairment of a lien unless it is
4-41 pursuant to a waiver and release prescribed by this section or the lien
4-42 claimant has actually received payment in full for such a lien claim.
4-43 3. This section does not affect the enforceability of either an accord
4-44 and satisfaction regarding a bona fide dispute or any agreement made in
4-45 settlement of an action pending in any court, provided the accord and
4-46 satisfaction or agreement and settlement make specific reference to the
4-47 lien rights waived or impaired and is signed by the lien claimant.
5-1 4. The waiver and release given by any lien claimant is
5-2 unenforceable unless it is in the following forms in the following
5-3 circumstances:
5-4 (a) Where the lien claimant is required to execute a waiver and
5-5 release in exchange for or to induce the payment of a progress payment
5-6 and the lien claimant is not in fact paid in exchange for the waiver and
5-7 release or a single payee check or joint payee check is given in exchange
5-8 for the waiver and release, the waiver and release must be in the
5-9 following form:
5-10 Conditional Waiver and Release
5-11 Upon Progress Payment
5-12 Property Name:...................................................
5-13 Property Location:..............................................
5-14 Undersigned’s Customer:...................................
5-15 Invoice/Payment Application Number:..............
5-16 Payment Amount:..............................................
5-17 Payment Period:.................................................
5-18 Upon receipt by the undersigned of a check in the above referenced
5-19 Payment Amount payable to the undersigned, and when the check has
5-20 been properly endorsed and has been paid by the bank on which it is
5-21 drawn, this document becomes effective to release and the undersigned
5-22 shall be deemed to waive any notice of lien, any private bond right, any
5-23 claim for payment and any rights under any similar ordinance, rule or
5-24 statute related to payment rights that the undersigned has on the above
5-25 described Property to the following extent:
5-26 This release covers a progress payment for all work, materials or
5-27 equipment furnished by the undersigned to the Property or to the
5-28 Undersigned’s Customer, for only the Payment Amount or such portion
5-29 of the Payment Amount as the undersigned has actually paid, and does
5-30 not cover any retention withheld, any items, modifications or changes
5-31 pending approval, disputed items and claims, or items furnished or
5-32 invoiced after the Payment Period. Before any recipient of this document
5-33 relies on it, he should verify evidence of payment to the undersigned.
5-34 The undersigned warrants that he either has already paid or will use
5-35 the money he receives from this progress payment promptly to pay in full
5-36 all his laborers, subcontractors, materialmen and suppliers for all work,
5-37 materials or equipment that are the subject of this waiver and release.
5-38 DATED:........
5-39 ...........................
5-40 (Company Name)
5-41 By:.....................
5-42 Its:......................
6-1 (b) Where the lien claimant has been paid the full amount provided
6-2 for in the progress payment, the waiver and release must be in the
6-3 following form:
6-4 Unconditional Waiver and Release
6-5 Upon Progress Payment
6-6 Property Name:....................................................
6-7 Property Location:...............................................
6-8 Undersigned’s Customer:....................................
6-9 Invoice/Payment Application Number:...............
6-10 Payment Amount:..............................................
6-11 Payment Period:.................................................
6-12 The undersigned has been paid and has received a progress payment
6-13 in the above referenced Payment Amount for all work, materials and
6-14 equipment the undersigned furnished to his Customer for the above
6-15 described Property and does hereby waive and release any notice of lien,
6-16 any private bond right, any claim for payment and any rights under any
6-17 similar ordinance, rule or statute related to payment rights that the
6-18 undersigned has on the above described Property to the following extent:
6-19 This release covers a progress payment for all work, materials and
6-20 equipment furnished by the undersigned to the Property or to the
6-21 Undersigned’s Customer, for only the Payment Amount or such portion
6-22 of the Payment Amount as the undersigned has actually paid, and does
6-23 not cover any retention withheld, any items, modifications or changes
6-24 pending approval, disputed items and claims, or items furnished or
6-25 invoiced after the Payment Period. Before any recipient of this document
6-26 relies on it, he should verify evidence of payment to the undersigned.
6-27 The undersigned warrants that he either has already paid or will use
6-28 the money he receives from this progress payment promptly to pay in full
6-29 all his laborers, subcontractors, materialmen and suppliers for all work,
6-30 materials or equipment that are the subject of this waiver and release.
6-31 DATED:........
6-32 ...........................
6-33 (Company Name)
6-34 By:.....................
6-35 Its:......................
6-36 (Each unconditional waiver and release must contain the following
6-37 language, in type at least as large as the largest type otherwise on the
6-38 document:)
6-39 Notice: This document waives rights unconditionally and states that you
6-40 have been paid for giving up those rights. This document is enforceable
6-41 against you if you sign it, even if you have not been paid the full Payment
7-1 Amount or in full for the Payment Period. If you have not been paid, use
7-2 a conditional release form.
7-3 (c) Where the lien claimant is required to execute a waiver and release
7-4 in exchange for or to induce payment of a final payment and the lien
7-5 claimant is not paid in exchange for the waiver and release or a single
7-6 payee check or joint payee check is given in exchange for the waiver and
7-7 release, the waiver and release must be in the following form:
7-8 Conditional Waiver and Release
7-9 Upon Final Payment
7-10 Property Name:...................................................
7-11 Property Location:..............................................
7-12 Undersigned’s Customer:...................................
7-13 Invoice/Payment Application Number:..............
7-14 Payment Amount:..............................................
7-15 Amount of Disputed Claims:..............................
7-16 Description of Disputed Claims:.........................
7-17 Upon receipt by the undersigned of a check in the above referenced
7-18 Payment Amount payable to the undersigned, and when the check has
7-19 been properly endorsed and has been paid by the bank on which it is
7-20 drawn, this document becomes effective to release and the undersigned
7-21 shall be deemed to waive any notice of lien, any private bond right, any
7-22 claim for payment and any rights under any similar ordinance, rule or
7-23 statute related to payment rights that the undersigned has on the above
7-24 described Property to the following extent:
7-25 This release covers the final payment to the undersigned for all work,
7-26 materials or equipment furnished by the undersigned to the Property or
7-27 to the Undersigned’s Customer and does not cover payment for Disputed
7-28 Claims, if any. Before any recipient of this document relies on it, he
7-29 should verify evidence of payment to the undersigned.
7-30 The undersigned warrants that he either has already paid or will use
7-31 the money he receives from the final payment promptly to pay in full all
7-32 his laborers, subcontractors, materialmen and suppliers for all work,
7-33 materials or equipment that are the subject of this waiver and release.
7-34 DATED:........
7-35 ...........................
7-36 (Company Name)
7-37 By:.....................
7-38 Its:......................
7-39 (d) Where the lien claimant has been paid the final payment, the
7-40 waiver and release must be in the following form:
8-1 Unconditional Waiver and Release
8-2 Upon Final Payment
8-3 Property Name:....................................................
8-4 Property Location:...............................................
8-5 Undersigned’s Customer:....................................
8-6 Invoice/Payment Application Number:...............
8-7 Amount of Disputed Claims:...............................
8-8 Description of Disputed Claims:..........................
8-9 The undersigned has been paid in full for all work, materials and
8-10 equipment the undersigned furnished to his Customer for the above
8-11 described Property and does hereby waive and release any notice of lien,
8-12 any private bond right, any claim for payment and any rights under any
8-13 similar ordinance, rule or statute related to payment rights that the
8-14 undersigned has on the above described Property, except for the payment
8-15 of Disputed Claims, if any.
8-16 The undersigned warrants that he either has already paid or will use
8-17 the money he receives from this final payment promptly to pay in full all
8-18 his laborers, subcontractors, materialmen and suppliers for all work,
8-19 materials and equipment that are the subject of this waiver and release.
8-20 DATED:........
8-21 ...........................
8-22 (Company Name)
8-23 By:.....................
8-24 Its:......................
8-25 (Each unconditional waiver and release must contain the following
8-26 language, in type at least as large as the largest type otherwise on the
8-27 document:)
8-28 Notice: This document waives rights unconditionally and states that you
8-29 have been paid for giving up those rights. This document is enforceable
8-30 against you if you sign it, even if you have not been paid. If you have not
8-31 been paid, use a conditional release form.
8-32 Sec. 27. NRS 108.221 is hereby amended to read as follows:
8-33 108.221 [As used in NRS 108.221 to 108.246, inclusive, unless the
8-34 context otherwise requires, “work] “Work of improvement” [or
8-35 “improvement”] means the entire structure or scheme of improvement as a
8-36 whole[.] , including, without limitation, all work, materials and
8-37 equipment to be used in or for the construction, alteration or repair of
8-38 the property or any improvement, whether under multiple prime
8-39 contracts or a single prime contract, except as follows:
8-40 1. If a scheme of improvement consists of the construction of two or
8-41 more separate buildings and each building is constructed upon a
8-42 separate lot or parcel of land and pursuant to a separate prime contract
9-1 for only that building, then each building shall be deemed a separate
9-2 work of improvement; and
9-3 2. If the improvement of the site is provided for in a prime contract
9-4 that is separate from all prime contracts for the construction of one or
9-5 more buildings on the property, the improvement of the site shall be
9-6 deemed a separate work of improvement from the construction of the
9-7 buildings and the commencement of construction of the improvement of
9-8 the site does not constitute the commencement of the construction of the
9-9 buildings. As used in this subsection, “improvement of the site” means
9-10 the development, enhancement or addition to the property, by providing
9-11 any of the following preparatory to the construction of a building:
9-12 (a) The demolition or removal of improvements, trees or other
9-13 vegetation;
9-14 (b) The drilling of test holes;
9-15 (c) Grading, grubbing, filling or excavating;
9-16 (d) Constructing or installing sewers or other public utilities; or
9-17 (e) Constructing a vault, cellar or room under sidewalks or making
9-18 improvements to the sidewalks in front of or adjoining the property.
9-19 Sec. 28. NRS 108.222 is hereby amended to read as follows:
9-20 108.222 1. Except as otherwise provided in subsection 2, a person
9-21 who performs [labor] work upon or furnishes material [of the] or
9-22 equipment with a value of $500 or more, to be used in the construction,
9-23 alteration or repair of any [building, or other superstructure, railway,
9-24 tramway, toll road, canal, water ditch, flume, aqueduct or reservoir, bridge,
9-25 fence or any other structure,] work of improvement, has a lien upon the
9-26 [premises and any building, structure] property, work of improvement and
9-27 any improvement [thereon] on the property for:
9-28 (a) If the parties entered into a contract, the unpaid balance of the price
9-29 agreed upon for[;] the work performed or material furnished or rented,
9-30 as the case may be, by each respectively, whether performed or furnished
9-31 at the request of the owner of the building or improvement, or at the
9-32 request of his agent; or
9-33 (b) [In absence of] If a specific price for some or all the work, material
9-34 or equipment is not set forth in a contract, an amount equal to the fair
9-35 market value of[, the labor] the work performed or material furnished or
9-36 rented, as the case may be, by each respectively, including a reasonable
9-37 allowance for overhead and a profit, whether performed or furnished at the
9-38 [instance] request of the owner of the building or other improvement, or at
9-39 the [instance] request of his agent.
9-40 2. If a contractor’s license is required for the work, only a contractor
9-41 licensed pursuant to chapter 624 of NRS, an employee of such a contractor
9-42 or a person who furnishes material or equipment to be used in the project
9-43 may have a lien as described in subsection 1.
9-44 [3. All miners, laborers and others who perform labor to the amount of
9-45 $500 or more in or upon any mine, or upon any shaft, tunnel, adit or other
9-46 excavation, designed or used to prospect, drain or work the mine, and all
9-47 persons who furnish any timber or other material, of the value of $500 or
9-48 more, to be used in or about a mine, whether performed or furnished at the
10-1 instance of the owner of the mine or his agent, have, and may each
10-2 respectively claim and hold, a lien upon that mine for:
10-3 (a) If the parties entered into a contract, the unpaid balance of the price
10-4 agreed upon for; or
10-5 (b) In absence of a contract, an amount equal to the fair market value of,
10-6 the labor so performed or material furnished, including a reasonable
10-7 allowance for overhead and a profit.
10-8 4. Every contractor, subcontractor, engineer, land surveyor, geologist,
10-9 architect, builder or other person having charge or control of any mining
10-10 claim, or any part thereof, or of the construction, alteration or repair, either
10-11 in whole or in part, of any building or other improvement, as these terms
10-12 are used in subsection 1, shall be held to be the agent of the owner, for the
10-13 purposes of NRS 108.221 to 108.246, inclusive.]
10-14 Sec. 29. NRS 108.225 is hereby amended to read as follows:
10-15 108.225 1. The liens provided for in NRS 108.221 to 108.246,
10-16 inclusive, and sections 2 to 26, inclusive, of this act are preferred to:
10-17 (a) Any lien, mortgage or other encumbrance which may have attached
10-18 to the property after the [time when the building, improvement or structure
10-19 was commenced, work done, or materials were commenced to be
10-20 furnished.] commencement of construction of a work of improvement.
10-21 (b) Any lien, mortgage or other encumbrance of which the [lienholder]
10-22 lien claimant had no notice of and which was unrecorded against the
10-23 property at the [time the building, improvement or structure was
10-24 commenced, work
done, or the materials were commenced to be
furnished.
10-25 For the purposes of this subsection, “work done” does not include any
10-26 work commenced before on-site construction has started.
10-27 2. Except as otherwise provided in subsection 3, every]
10-28 commencement of construction of a work of improvement.
10-29 2. Every mortgage or encumbrance imposed upon, or conveyance
10-30 made of, property affected by the liens provided for in NRS 108.221 to
10-31 108.246, inclusive, [between the time when the building, improvement,
10-32 structure or work thereon was commenced, or the materials thereof were
10-33 commenced to be furnished, and the expiration of the time fixed in NRS
10-34 108.221 to 108.246, inclusive, in which liens therefor may be recorded,
10-35 whatever the terms of payment may be,] and sections 2 to 26, inclusive, of
10-36 this act after the commencement of construction of a work of
10-37 improvement are subordinate and subject to [the liens in full authorized in]
10-38 all liens that are properly perfected pursuant to NRS 108.221 to 108.246,
10-39 inclusive, and sections 2 to 26, inclusive, of this act regardless of the date
10-40 of recording the notices of liens.
10-41 [3. If any improvement at the site is provided for in a contract that is
10-42 separate from any contract for the construction of a building or other
10-43 structure, the improvement at the site shall be deemed a separate work of
10-44 improvement and the commencement thereof does not constitute the
10-45 commencement of the construction of the building or other structure. As
10-46 used in this subsection, “improvement at the site” means:
10-47 (a) The demolition or removal of improvements, trees or other
10-48 vegetation from;
11-1 (b) The drilling of test holes in;
11-2 (c) Grading, filling or otherwise improving; or
11-3 (d) Constructing or installing sewers or other
public utilities
on,
11-4 any lot or tract of land or the street, highway or sidewalk in front of or
11-5 adjoining any lot or tract of land. The term includes the construction of any
11-6 vaults, cellars or rooms under the sidewalks or making improvements to
11-7 the sidewalks in front of or adjoining any tract of land.]
11-8 Sec. 30. NRS 108.226 is hereby amended to read as follows:
11-9 108.226 1. [Every person claiming the benefit of NRS 108.221 to
11-10 108.246, inclusive,] To perfect his lien, a lien claimant must record his
11-11 notice of lien in the office of the county recorder of the county where the
11-12 property or any improvement or some part thereof is located, in the form
11-13 provided in subsection [5:] 2:
11-14 (a) Within 90 days after the date on which the latest of the following
11-15 occurs:
11-16 (1) The completion of the work of improvement;
11-17 [(b) Within 90 days after the]
11-18 (2) The last delivery of material or furnishing of equipment by the
11-19 lien claimant[; or
11-20 (c) Within 90 days after the] for the work of improvement; or
11-21 (3) The last performance of [labor] work by the lien claimant[,
11-22 whichever is later.
11-23 2. The time within which to perfect the lien by recording the notice of
11-24 lien is shortened if a] for the work of improvement; or
11-25 (b) Within 40 days after the recording of a notice of completion, if the
11-26 notice of completion is recorded [in a timely] and served in the manner
11-27 required pursuant to NRS 108.228 . [, in which event the notice of lien
11-28 must be recorded within 40 days after the recording of the notice of
11-29 completion.
11-30 3. Any one of the following acts or events is equivalent to “completion
11-31 of the work of improvement” for all purposes of NRS 108.221 to 108.246,
11-32 inclusive:
11-33 (a) The occupation or use of a building, improvement or structure by the
11-34 owner, his agent or his representative and accompanied by cessation of
11-35 labor thereon.
11-36 (b) The acceptance by the owner, his agent or his representative of the
11-37 building, improvement or structure.
11-38 (c) The cessation from labor for 30 days upon any building,
11-39 improvement or structure, or the alteration, addition to or repair thereof.
11-40 (d) The recording of the notice of completion provided in NRS 108.228.
11-41 4. For the purposes of this section, if a work of improvement consists
11-42 of the construction of more than one separate building and each building is
11-43 constructed pursuant to:
11-44 (a) A separate contract, each building shall be deemed a separate work
11-45 of improvement. The time within which to perfect the lien by recording the
11-46 notice of lien pursuant to subsection 1 commences to run upon the
11-47 completion of each separate building; or
12-1 (b) A single contract, the time within which to perfect the lien by
12-2 recording the notice of lien pursuant to subsection 1 commences to run
12-3 upon the
completion of all the buildings constructed pursuant to
that contract.
12-4 As used in this subsection, “separate building” means one structure of a
12-5 work of improvement and any garages or other outbuildings appurtenant
12-6 thereto.
12-7 5.] 2. The notice of [mechanic’s lien must be recorded in the office of
12-8 the county recorder of the county where the property or some part thereof
12-9 is situated and] lien must contain:
12-10 (a) A statement of [his demand] the lienable amount after deducting all
12-11 just credits and offsets.
12-12 (b) The name of the owner , [or reputed owner] if known.
12-13 (c) The name of the person by whom he was employed or to whom he
12-14 furnished the material.
12-15 (d) A brief statement of the terms[, time given and conditions] of
12-16 payment of his contract.
12-17 (e) A description of the property to be charged with the notice of lien
12-18 sufficient for identification.
12-19 [6. The claim]
12-20 3. The notice of lien must be verified by the oath of the lien claimant
12-21 or some other person. The [claim] notice of lien need not be acknowledged
12-22 to be recorded.
12-23 [7.] 4. It is unlawful for a person knowingly to make a false statement
12-24 in or relating to the recording of a notice of lien pursuant to the provisions
12-25 of this section. A person who violates this subsection is guilty of a gross
12-26 misdemeanor and shall be punished by a fine of not less than $5,000 nor
12-27 more than $10,000.
12-28 5. A notice of lien may be in substantially the following form:
12-29 Notice of Claim of Lien
12-30 The undersigned claims a lien upon the property described in this notice
12-31 for work, materials or equipment furnished for the improvement of the
12-32 property:
12-33 1. The amount of the lien, after deducting all
just credits and offsets,
is: $........................................................................ .
12-34 2. The name of the owner, if known, of the property is: ............................................................ .
12-35 3. The name of the person by whom the lien
claimant was employed
or to whom the lien claimant furnished work, materials or equipment
is: .......................................................................... .
12-36 4. A brief statement of the terms, time given and conditions of the lien
12-37 claimant’s contract is: ..................................... .
12-38 5. A description of the property is: ................... .
12-39 ...................................
12-40 (Print Name of Lien Claimant)
13-1 By:.......................
13-2 (Authorized Signature)
13-3 State of ...... )
13-4 ) ss.
13-5 County of )
13-6 ........................ (print name), being first duly sworn on oath
13-7 according to law, deposes and says:
13-8 I have read the foregoing Notice of Claim of Lien, know the contents
13-9 thereof and state that the same are true of my own personal knowledge,
13-10 except those matters stated upon information and belief, and, as to those
13-11 matters, I believe them to be true.
13-12 ........................................
13-13 Subscribed and sworn to before me
13-14 this ................................ day of the month of ......... of the year ................
13-15 ........................................
13-16 Notary Public in and for
13-17 the County and State
13-18 Sec. 31. NRS 108.227 is hereby amended to read as follows:
13-19 108.227 1. In addition to the requirements of NRS 108.226, a copy
13-20 of the [claim] notice of lien must be served upon the [record] owner of the
13-21 property within 30 days after recording the notice of lien, in one of the
13-22 following ways:
13-23 (a) By personally delivering a copy of the notice of lien to the [record
13-24 owner personally;
13-25 (b) If he is absent from his place of residence, or from his usual place of
13-26 business, by leaving a copy with some person of suitable age and discretion
13-27 at either place and mailing a copy addressed to the record owner at his
13-28 place of residence or place of business; or
13-29 (c) If his] owner or resident agent of the owner;
13-30 (b) By mailing a copy of the notice of lien by certified mail return
13-31 receipt requested to the owner at his place of residence or his usual place
13-32 of business or to the resident agent of the owner at the address of the
13-33 resident agent; or
13-34 (c) If the place of residence or business of the owner and the address of
13-35 the resident agent of the owner, if applicable, cannot be [ascertained, or a
13-36 person of suitable age or discretion cannot be found there,] determined, by:
13-37 (1) Fixing a copy of the notice of lien in a conspicuous place on the
13-38 property;
13-39 (2) Delivering a copy of the notice of lien to a person there residing,
13-40 if such a person can be found; and
13-41 (3) Mailing a copy of the notice of lien addressed to the [record]
13-42 owner at [the] :
13-43 (I) The place where the property is [situated.
13-44 2. Failure] located;
13-45 (II) The address of the owner as identified in the deed; or
14-1 (III) The address identified in the records of the office of the
14-2 county assessor.
14-3 2. If there is more than one owner, failure to serve a copy of the
14-4 [claim] notice of lien upon a particular [record] owner does not invalidate a
14-5 [claim based on a valid service] notice of lien if properly served upon
14-6 another [record] owner.
14-7 3. [As used in this section, “record owner” means any person who
14-8 holds an interest in real property or any improvement thereon evidenced by
14-9 a conveyance or other instrument which transfers that interest to him and is
14-10 recorded in the office of the county recorder of the county in which the real
14-11 property is located, but does not include:
14-12 (a) A mortgagee;
14-13 (b) A trustee under, or a beneficiary of, a deed of trust; or
14-14 (c) The owner or holder of a lien encumbering real property or any
14-15 improvement thereon.] Each subcontractor who participates in the
14-16 construction, improvement, alteration or repair of a work of
14-17 improvement shall deliver a copy of each notice of lien required by NRS
14-18 108.226 to the prime contractor. The failure of a subcontractor to deliver
14-19 the notice to the prime contractor is a ground for disciplinary
14-20 proceedings pursuant to chapter 624 of NRS.
14-21 Sec. 32. NRS 108.2275 is hereby amended to read as follows:
14-22 108.2275 1. [The] Provided an order has not been entered pursuant
14-23 to NRS 108.2419 releasing the lien of a lien claimant upon the posting of
14-24 a surety bond, the debtor of the lien claimant or a party in interest in the
14-25 [premises] property subject to the notice of lien who believes the notice of
14-26 lien is frivolous and was made without reasonable cause, or that the
14-27 amount of the notice of lien is excessive, may apply by motion to the
14-28 district court for the county where the property or some part thereof is
14-29 [situated] located for an order directing the lien claimant to appear before
14-30 the court to show cause why the relief requested should not be granted.
14-31 2. The motion must [set] :
14-32 (a) Set forth in detail the legal and factual grounds upon which relief is
14-33 requested ; and [must be]
14-34 (b) Be supported by [the affidavit of] :
14-35 (1) A notarized affidavit signed by the applicant [or his attorney]
14-36 setting forth [a concise statement of] in detail the facts upon which the
14-37 motion is based[.] ; and
14-38 (2) Documentary evidence, if any.
14-39 3. If the court issues an order for a hearing, the applicant shall serve
14-40 notice of the application and order of the court on the lien claimant within
14-41 3 days after the court issues the order. The court shall conduct the hearing
14-42 within not less than [10] 15 days or more than [20] 30 days after the court
14-43 issues the order[.
14-44 2.] for a hearing.
14-45 4. The order for a hearing must include a statement that if the lien
14-46 claimant fails to appear at the time and place noted, the notice of lien will
14-47 be released with prejudice and the lien claimant will be ordered to pay the
14-48 reasonable costs [requested by] the applicant[, including reasonable
14-49 attorney’s fees.
15-1 3.] incurs in bringing the motion, including reasonable attorney’s fees.
15-2 5. If, at the time the application is filed, an action to foreclose the
15-3 notice of lien has not been filed, the clerk of the court shall assign a
15-4 number to the application and obtain from the applicant a filing fee of $85.
15-5 If an action has been filed to foreclose the notice of lien before the
15-6 application was filed pursuant to this section, the application must be made
15-7 a part of the action to foreclose the notice of lien.
15-8 [4.] 6. If, after a hearing on the matter, the court determines that[:
15-9 (a) The] the applicant:
15-10 (a) Has proven that the notice of lien is frivolous and was made
15-11 without reasonable cause, the court may make an order releasing the lien
15-12 and awarding costs and reasonable attorney’s fees to the applicant[.
15-13 (b) The] for bringing the motion.
15-14 (b) Has proven that the amount of the notice of lien is excessive, the
15-15 court may make an order reducing the notice of lien to an amount deemed
15-16 appropriate by the court and awarding costs and reasonable attorney’s fees
15-17 to the applicant[.
15-18 (c) The] for bringing the motion.
15-19 (c) Has not proven the notice of lien is [not] frivolous and was made
15-20 with reasonable cause [and] or that the amount of the notice of lien is [not]
15-21 excessive, the court may make an order awarding costs and reasonable
15-22 attorney’s fees to the lien claimant[.
15-23 5.] for defending the motion.
15-24 7. Proceedings conducted pursuant to this section do not affect any
15-25 other rights and remedies otherwise available to the parties.
15-26 [6.] 8. An appeal may be taken [by either party] from an order made
15-27 pursuant to subsection [4.] 6 on the same grounds as an appeal from a
15-28 grant or denial of a motion for summary judgment.
15-29 [7.] 9. If an order releasing or reducing a notice of lien is entered by
15-30 the court, and the order is not stayed, the [lien claimant shall, within 2]
15-31 applicant may, within 5 days after the order is entered, record a certified
15-32 copy of the order in the office of the county recorder of the county where
15-33 the property or some part thereof is [situated.] located. The recording of a
15-34 certified copy of the order releasing or reducing a notice of lien is notice to
15-35 any interested party that the notice of lien has been released or reduced.
15-36 10. A notice of lien is frivolous and made without reasonable cause
15-37 when, in accordance with the standards applicable to a motion for
15-38 summary judgment, and viewed in the light most favorable to the lien
15-39 claimant, it is clear beyond legitimate dispute that the notice of lien is
15-40 baseless in both fact and law and without a good faith argument for the
15-41 extension of law thereto.
15-42 Sec. 33. NRS 108.228 is hereby amended to read as follows:
15-43 108.228 1. The owner may record a notice of completion after[:
15-44 (a) The] the completion of [any] the work of improvement . [; or
15-45 (b) There has been a cessation from labor thereon for a period of 30
15-46 days.]
15-47 2. The notice of completion must be recorded in the office of the
15-48 county recorder of the county where the property is [situated] located and
15-49 must set forth:
16-1 (a) The date [when the work of improvement was completed, or the date
16-2 on which cessation from labor occurred first and the period of its duration.]
16-3 of completion of the work of improvement.
16-4 (b) The owner’s name or owners’ names, as the case may be, the
16-5 address of the owner or addresses of the owners, as the case may be, and
16-6 the nature of the title, if any, of the person signing the notice.
16-7 (c) A description of the property sufficient for identification.
16-8 (d) The name of the prime contractor[,] or prime contractors, if any.
16-9 3. The notice must be verified by the owner or by some other person
16-10 on his behalf. The notice need not be acknowledged to be recorded.
16-11 4. Upon recording the notice pursuant to this section, the owner shall,
16-12 within 10 days after the notice is recorded, deliver a copy of the notice by
16-13 certified mail, to:
16-14 (a) [Any general] Each prime contractor with whom the owner
16-15 contracted for all or any part of the work of improvement.
16-16 (b) [Any person] Each lien claimant who, before the notice was
16-17 recorded pursuant to this section, submitted a request to the owner to
16-18 receive the notice.
16-19 5. The failure of the owner to deliver a copy of the notice of
16-20 completion in the time and manner as provided in this section renders
16-21 the notice of completion ineffective with respect to each prime contractor
16-22 and lien claimant.
16-23 Sec. 34. NRS 108.229 is hereby amended to read as follows:
16-24 108.229 1. At any time before the trial of any action to foreclose a
16-25 lien, a lien claimant may record an amended notice of lien to increase,
16-26 reduce, correct or clarify his notice of lien. The lien claimant shall serve
16-27 the owner of the property with an amended notice of lien in the same
16-28 manner as required for serving a notice of lien pursuant to NRS 108.227
16-29 and within 30 days after recording the amended notice of lien. A
16-30 variance between a notice of lien and an amended notice of lien must not
16-31 defeat the lien and shall not be deemed material unless the variance:
16-32 (a) Results from fraud or is made intentionally; or
16-33 (b) Misleads an adverse party to his prejudice, but then only with
16-34 respect to the adverse party who was prejudiced.
16-35 2. Upon the trial of any action or suit to foreclose [such lien no] a lien,
16-36 a variance between the lien and the proof [shall] must not defeat the lien
16-37 [or] and shall not be deemed material unless the [same results] variance:
16-38 (a) Results from fraud or is made intentionally[, or has misled] ; or
16-39 (b) Misleads the adverse party to his prejudice, but [in] then only with
16-40 respect to the adverse party who was prejudiced.
16-41 In all cases of immaterial variance the [claim] notice of lien may be
16-42 amended, by amendment duly recorded, to conform to the proof.
16-43 [2. No]
16-44 3. An error or mistake in the name of the owner [or reputed owner]
16-45 contained in any [claim] notice of lien [shall] must not be held to defeat
16-46 the lien, unless a correction of the notice of lien in this particular would
16-47 prejudice the rights of an innocent bona fide purchaser or encumbrancer for
16-48 value[.
17-1 3.] , but then only with respect to the bona fide purchaser or
17-2 encumbrancer for value who is prejudiced.
17-3 4. Upon the trial, [however,] if it [shall appear] appears that an error or
17-4 mistake has been made in the name of the owner [or reputed owner,] or
17-5 that the wrong person has been named as owner [or reputed owner] in any
17-6 [such claim] notice of lien, the court shall order an amended [claim] notice
17-7 of lien to be recorded with the county recorder where the original [claim]
17-8 notice of lien was recorded[,] and shall issue to the person who is so made
17-9 to appear to be the original [or reputed] owner a notice directing [such] the
17-10 person or persons to be and appear before the court within the same time as
17-11 is provided by Nevada Rules of Civil Procedure for the appearance in other
17-12 actions after the service of summons, which notice [shall] must be served
17-13 in all respects as a summons is required to be served, and to show cause
17-14 why:
17-15 (a) He should not be substituted[,] in the action as the correct owner,
17-16 in the [claim] notice of lien and in the suit, in lieu of the person so made
17-17 defendant and alleged to be owner [or reputed owner] by mistake.
17-18 (b) He should not be bound by the judgment or decree of the court.
17-19 Such proceedings [shall] must be had therein as though the party so cited
17-20 to appear had been an original party defendant in the action or suit, and
17-21 originally named in the [claim] notice of lien as owner , [or reputed
17-22 owner,] and the rights of all parties [shall] must thereupon be fully
17-23 adjudicated.
17-24 [4.] 5. A notice of lien which contains therein the description of the
17-25 [real] property supplied by and set forth in the notice of completion
17-26 recorded pursuant to NRS 108.228 [shall,] must, for all purposes, be
17-27 sufficient as a description of the actual [real] property upon which the work
17-28 [or labor] was performed or materials or equipment were supplied[;] , and
17-29 amendment of the notice of lien [claim] or amendment of the pleading filed
17-30 by the lien claimant in a foreclosure action, or both, may be made to state
17-31 the correct description, and [such] the corrected description [shall] must
17-32 relate back to the time of recording [such] the notice of lien , [claim,]
17-33 unless a correction of the notice of lien in this particular would prejudice
17-34 the rights of an innocent bona fide purchaser or encumbrancer for value[.]
17-35 , but then only with respect to the bona fide purchaser or encumbrancer
17-36 for value who is prejudiced.
17-37 Sec. 35. NRS 108.231 is hereby amended to read as follows:
17-38 108.231 1. In every case in which [one claim] a notice of lien is
17-39 recorded against a work of improvement which includes two or more
17-40 separate buildings[,] or mining claims [or other improvements] and each
17-41 separate building or mining claim is located upon a separate lot or parcel
17-42 of land owned by the same person, at the time of recording the notice of
17-43 lien, the [person recording such claim must at the same time] lien claimant
17-44 must designate the lienable amount due to him on each [of such buildings,
17-45 mining claims or other improvements; otherwise the lien of such claim is
17-46 postponed to other liens.] building or mining claim. For purposes of this
17-47 subsection, the designation of a lien claimant’s lienable amount against
17-48 two or more buildings or mining claims must not invalidate or reduce a
17-49 notice of lien as against the buildings or mining claims, if the
18-1 designation was estimated by the lien claimant in good faith or was based
18-2 upon a pro rata division of the total lienable amount.
18-3 2. The lien of [such claimant does not extend beyond] a lien claimant
18-4 only applies to the lienable amount designated[,] in the notice of lien,
18-5 plus all amounts that may be awarded by the court pursuant to NRS
18-6 108.237, as against other creditors having liens by judgment or otherwise,
18-7 upon [either of such buildings or other improvements, or upon the land
18-8 upon which the same are constructed.] the buildings or mining claims.
18-9 The lienable amount chargeable to the interest of the owner in each
18-10 building or mining claim must be the total amount of the lien claimant’s
18-11 notice of lien, without regard to the proportionate amount designated to
18-12 each separate building or mining claim in the lien claimant’s notice of
18-13 lien, plus all amounts that may be awarded by the court pursuant to NRS
18-14 108.237, but upon the trial thereof, the court may, where it deems it
18-15 equitable to do so, distribute the lien equitably as between the several
18-16 buildings and mining claims involved.
18-17 3. If a lien claimant fails to designate in his notice of lien the amount
18-18 due to him on each separate building or mining claim, the lien
18-19 claimant’s notice of lien must be postponed to the notices of lien of other
18-20 lien claimants and other encumbrancers for value who have designated
18-21 the amount due on each building or mining claim but must not be
18-22 postponed to any rights or interests of the owner.
18-23 Sec. 36. NRS 108.232 is hereby amended to read as follows:
18-24 108.232 The recorder in the county in which property that is subject
18-25 to a lien is located must record the [claim] notice of lien in a book kept by
18-26 him for that purpose, which record must be indexed as deeds and other
18-27 conveyances are required by law to be indexed, and for which he may
18-28 receive the same fees as are allowed by law for recording deeds and other
18-29 instruments.
18-30 Sec. 37. NRS 108.233 is hereby amended to read as follows:
18-31 108.233 1. [No] A lien provided for in NRS 108.221 to 108.246,
18-32 inclusive, [binds any building, mining claim, improvement or structure]
18-33 and sections 2 to 26, inclusive, of this act must not bind the property
18-34 subject to the lien for a [longer] period longer than 6 months after [such
18-35 lien has been] the date on which the notice of lien was recorded, unless:
18-36 (a) Proceedings are commenced in a proper court within that time to
18-37 enforce the same; or
18-38 (b) The time to commence the action is extended by a written
18-39 instrument signed by the [lienor] lien claimant and by a person or persons
18-40 in interest in the property subject to the lien, in which event, and as to only
18-41 that person or those persons in interest signing the agreement, the time is
18-42 extended , [;] but no extension [shall be] is valid unless in writing and
18-43 recorded in the county recorder’s office in which the notice of lien is
18-44 recorded and unless the extension agreement is recorded within [such] the
18-45 6-month period[; and such] , and the extension agreement, to be recorded,
18-46 must be acknowledged as required by law for the acknowledgment of
18-47 deeds. An action may be commenced within [such] the extended time only
18-48 [as to] against the persons signing the extension agreement and only as
18-49 their interests in the property are affected, and upon the lapse of the time
19-1 specified in the extension agreement, an action may not thereafter be
19-2 commenced, nor may a second extension be given.
19-3 2. For all purposes, a [mechanic’s lien of record] notice of lien shall be
19-4 deemed to have expired as a lien against the property after the lapse of the
19-5 6-month period provided in subsection 1, and [such recording shall] the
19-6 recording of a notice of lien must not provide actual or constructive notice
19-7 after the lapse of [such] the 6-month period and as a lien on the [real]
19-8 property referred to in the [recorded] notice of lien, unless, [prior to] before
19-9 the lapse of [such] the 6-month period [the] an extension agreement has
19-10 been recorded, in which event, the lien [shall] will only continue as a lien
19-11 on the interests of those persons signing the extension for the period
19-12 specified in the extension . [and for no longer period.] An extension must
19-13 not be given for a period in excess of 1 year beyond the date on which the
19-14 notice of lien is recorded.
19-15 3. If there are other [claims] notices of lien outstanding against the
19-16 property, [no extension shall] an extension must not be given upon [the] a
19-17 notice of lien which will tend to delay or postpone the collection of other
19-18 [claims] liens evidenced by a notice of lien or encumbrances against the
19-19 property . [; and no extension shall be given for a period in excess of 1 year
19-20 beyond the recording of the lien.]
19-21 Sec. 38. NRS 108.234 is hereby amended to read as follows:
19-22 108.234 [Every building or other improvement mentioned in NRS
19-23 108.222,]
19-24 1. Except as otherwise provided in subsection 2, every improvement
19-25 constructed , altered or repaired upon [any lands with the knowledge of
19-26 the owner or the person having or claiming any interest therein, shall]
19-27 property must be held to have been constructed , altered or repaired at the
19-28 instance of [such owner or person] the owner having or claiming any
19-29 interest therein, and the interest owned or claimed [shall] must be subject
19-30 to any notice of lien recorded in accordance with the provisions of NRS
19-31 108.221 to 108.246, inclusive, [unless such owner or person having or
19-32 claiming an interest therein shall,] and sections 2 to 26, inclusive, of this
19-33 act.
19-34 2. The interest of a disinterested owner in any improvement and the
19-35 property upon which an improvement is constructed, altered or repaired
19-36 is not subject to a notice of lien if the disinterested owner, within 3 days
19-37 after he [has obtained] first obtains knowledge of the construction,
19-38 alteration or repair, or the intended construction, alteration or repair, [give]
19-39 gives notice that he will not be responsible for [such] the improvement by
19-40 [filing] recording a notice in writing to that effect with the county recorder
19-41 of the county where the [land or building is situated;] property is located,
19-42 and, in the instance of[:
19-43 1.] a disinterested owner who is:
19-44 (a) A lessor, the notice of [lien] nonresponsibility shall be deemed
19-45 timely [filed if the same has been filed] recorded if it is recorded within 3
19-46 days immediately following the [execution] effective date of the lease [by
19-47 all parties as to that construction, alteration or repair, or intended
19-48 construction, alteration or repair, known to the lessor at] or the time of the
19-49 execution of the lease by all parties[.
20-1 2.] , whichever occurs first; or
20-2 (b) An optionor, the notice of [lien] nonresponsibility shall be deemed
20-3 timely filed if the same has been filed within 3 days immediately following
20-4 the [execution of the agreement permitting entry upon the real property by
20-5 all parties as to that construction, alteration, repair, or intended
20-6 construction, alteration, repair or other work known to the optionor at the
20-7 time of the execution of the agreement by all parties.] date on which the
20-8 option is exercised in writing.
20-9 3. Each notice of nonresponsibility recorded pursuant to this section
20-10 must identify:
20-11 (a) The name and address of the owner;
20-12 (b) The location of the improvement and the property upon which the
20-13 improvement is or will be constructed, altered or repaired;
20-14 (c) The nature and extent of the disinterested owner’s interest in the
20-15 improvement and the property upon which the improvement is or will be
20-16 constructed, altered or repaired; and
20-17 (d) The date on which the disinterested owner first learned of the
20-18 construction, alteration or repair of the improvement that is the subject
20-19 of the notice of nonresponsibility.
20-20 Sec. 39. NRS 108.235 is hereby amended to read as follows:
20-21 108.235 1. [The contractor shall be entitled to] A prime contractor:
20-22 (a) May record and recover[,] upon a notice of lien , [recorded by him,
20-23 only such] a lienable amount as may be due to him [according to the terms
20-24 of his contract, after deducting all claims of other parties] , plus all
20-25 amounts that may be awarded to him by the court pursuant to NRS
20-26 108.237; and
20-27 (b) Upon receipt of the amount described in paragraph (a), shall pay
20-28 all liens for the work [done and material furnished,] , equipment or
20-29 materials which were furnished to him, as provided in NRS 108.221 to
20-30 108.246, inclusive[.] , and sections 2 to 26, inclusive, of this act.
20-31 2. In all cases where a prime contractor has been paid for the work,
20-32 materials or equipment which are the subject of a notice of lien [is]
20-33 recorded under NRS 108.221 to 108.246, inclusive, [for work done or
20-34 materials furnished to any contractor,] and sections 2 to 26, inclusive, of
20-35 this act, he shall defend the owner in any action brought thereupon at his
20-36 own expense. [During the pendency of the action,]
20-37 3. Except as otherwise provided in this subsection, if a lien claimant
20-38 records a notice of lien for the work, equipment or materials furnished to
20-39 the prime contractor, the owner may withhold from the prime contractor
20-40 the amount of money for which [such] the notice of lien is [filed.]
20-41 recorded. If the lien claimant’s notice of lien resulted from the owner’s
20-42 failure to pay the prime contractor for the lien claimant’s work, materials
20-43 or equipment, the owner shall not withhold the amount set forth in the
20-44 notice of lien from the prime contractor for which the prime contractor
20-45 has tendered a release of the lien of the lien claimant. In case of judgment
20-46 against the owner or his property [upon] which is the subject of the lien,
20-47 the owner [shall be entitled to] may deduct, from any amount due or to
20-48 become due by him to the prime contractor, the amount [of the judgment
20-49 and costs. If the amount of the judgment and costs exceeds the amount due
21-1 by him to the contractor, or if the owner has settled with the contractor,]
21-2 justly paid by the owner to the lien claimant for which the prime
21-3 contractor was liable, and the owner [shall be entitled to] may recover
21-4 back from the prime contractor any amount so paid by the owner in excess
21-5 of the [contract price, and for which the contractor was originally the party
21-6 liable.] amount the court has found that the owner owes to the prime
21-7 contractor.
21-8 Sec. 40. NRS 108.236 is hereby amended to read as follows:
21-9 108.236 1. In every case in which different notices of liens are
21-10 asserted against any property, the court, in the judgment, must declare the
21-11 rank of each lien[,] claimant, or class of [liens,] lien claimants, which
21-12 must be in the following order:
21-13 (a) First: All [labor] work whether performed at the instance or
21-14 direction of the owner, the subcontractor or the [original] prime contractor.
21-15 (b) Second: Material suppliers[.
21-16 Third: The subcontractors, architects, land surveyors, geologists and
21-17 engineers, if such architects, land surveyors, geologists and engineers] and
21-18 lessors of equipment.
21-19 (c) Third: All other lien claimants who have performed their [services,]
21-20 work, in whole or in part, under contract with the [general contractor.
21-21 Fourth: The original contractors, architects, land surveyors, geologists
21-22 and engineers, if such architects, land surveyors, geologists and engineers
21-23 have not performed their services, in whole or in part, under contract with
21-24 the general contractor, and all persons other than original contractors,
21-25 subcontractors, architects, land surveyors, geologists and engineers.] prime
21-26 contractor or any subcontractor.
21-27 (d) Fourth: All other lien claimants.
21-28 2. The proceeds of the sale of the property must be applied to each lien
21-29 [,] claimant, or class of [liens,] lien claimants, in the order of its rank.
21-30 Sec. 41. NRS 108.237 is hereby amended to read as follows:
21-31 108.237 1. [Any number of persons claiming liens may join in the
21-32 same action. When separate actions are commenced the court may
21-33 consolidate them.] The court shall award to a prevailing lien claimant,
21-34 whether on its lien or on a surety bond, the following:
21-35 (a) The lienable amount found due to the lien claimant by the court;
21-36 (b) The cost of preparing and filing the lien claim, including, without
21-37 limitation, attorney’s fees, if any;
21-38 (c) The costs of the proceedings;
21-39 (d) Attorney’s fees and costs for representation of the lien claimant in
21-40 the proceedings;
21-41 (e) Interest; and
21-42 (f) Any other amounts as the court may find to be justly due and
21-43 owing to the lien claimant.
21-44 2. The court [may also allow] shall calculate interest for purposes of
21-45 this section based upon:
21-46 (a) The rate of interest agreed upon in the lien claimant’s contract; or
21-47 (b) If a rate of interest is not provided in the lien claimant’s contract,
21-48 interest at a rate equal to the prime rate at the largest bank in Nevada, as
21-49 ascertained by the commissioner of financial institutions, on January 1 or
22-1 July 1, as the case may be, immediately preceding the date of judgment,
22-2 plus 2 percent, on the amount of the lien found payable. [The interest is
22-3 payable from the date that the payment is found to have been due, and the
22-4 court may allow, as part of the costs, the money paid for recording the
22-5 lien.] The rate of interest must be adjusted accordingly on each January 1
22-6 and July 1 thereafter until the amount of the lien is paid.
22-7 [3. The court shall also allow to the prevailing party reasonable
22-8 attorney’s fees for the preparation of the lien and for representation of the
22-9 lien claimant in the action.]
22-10 Interest is payable from the date on which the payment is found to have
22-11 been due, as determined by the court.
22-12 Sec. 42. NRS 108.238 is hereby amended to read as follows:
22-13 108.238 Nothing contained in NRS 108.221 to 108.246, inclusive, and
22-14 sections 2 to 26, inclusive, of this act shall be construed to impair or affect
22-15 the right of [any person] a lien claimant to whom any debt may be due for
22-16 work [done or material] , materials or equipment furnished to maintain a
22-17 [personal] civil action to recover [such] that debt against the person liable
22-18 therefor[.] or to submit any controversy arising under a contract to
22-19 arbitration to recover that amount.
22-20 Sec. 43. NRS 108.239 is hereby amended to read as follows:
22-21 108.239 1. [Liens] A notice of lien may be enforced by an action in
22-22 any court of competent jurisdiction, on setting out in the complaint the
22-23 particulars of the demand, with a description of the [premises] property to
22-24 be charged with the lien.
22-25 2. At the time of filing the complaint and issuing the summons, the
22-26 [plaintiff] lien claimant shall:
22-27 (a) File a notice of pendency of the action in the manner provided in
22-28 NRS 14.010; and
22-29 (b) Cause a notice of foreclosure to be published at least once a week
22-30 for 3 successive weeks, in one newspaper published in the county, and if
22-31 there is no newspaper published in the county, then in such mode as the
22-32 court may determine, notifying all persons holding or claiming notices of
22-33 liens pursuant to the provisions of NRS 108.221 to 108.246, inclusive, and
22-34 sections 2 to 26, inclusive, of this act on the [premises] property to file
22-35 with the clerk and serve on the [plaintiff] lien claimant and also on the
22-36 defendant, if the defendant is within the state or is represented by counsel,
22-37 written statements of the facts constituting their liens, together with the
22-38 dates and amounts thereof. [The statements must be filed]
22-39 3. All persons holding or claiming a notice of lien may join a lien
22-40 claimant’s action by filing a statement of facts within 10 days after the
22-41 last publication of the notice[. The plaintiff] of foreclosure. Any number
22-42 of persons claiming liens may join in the same action if they timely file a
22-43 statement of facts in the lien claimant’s action. The lien claimant and
22-44 other parties adversely interested must be allowed [5] 20 days to answer
22-45 the statements.
22-46 [3.] 4. If it appears from the records of the county recorder that there
22-47 are other [lien claims] notices of liens recorded against the same
22-48 [premises] property at the time of the commencement of the action, the
22-49 [plaintiff] lien claimant shall, in addition to and after the initial publication
23-1 of the notice of foreclosure as provided in paragraph (b) of subsection 2,
23-2 mail to those other lien claimants, by registered or certified mail, or deliver
23-3 in person a copy of the notice of foreclosure as published.
23-4 [4.] 5. At the time of any change in the venue of the action, the
23-5 [plaintiff] lien claimant shall file a notice of pendency of the action, in the
23-6 manner provided in NRS 14.010, and include in the notice the court and
23-7 county to which the action is changed.
23-8 [5.] 6. When separate actions are commenced by lien claimants to
23-9 foreclose on their respective notices of lien, the court may consolidate all
23-10 the actions.
23-11 7. The court shall enter judgment according to the right of the parties,
23-12 and shall, by decree, proceed to hear and determine the claims in a
23-13 summary way, or may, if it be the district court, refer the claims to a
23-14 special master to ascertain and report upon the liens and the amount justly
23-15 due thereon. No consequential damages may be recovered in an action
23-16 pursuant to this section. All liens not so exhibited shall be deemed to be
23-17 waived in favor of those which are so exhibited.
23-18 [6.] 8. Upon petition by a lien claimant for a preferential trial
23-19 setting:
23-20 (a) The court shall give preference in setting a date for the trial of an
23-21 action brought pursuant to this section; and
23-22 (b) If a lien action is designated as complex by the court, the court
23-23 may take into account the rights and claims of all lien claimants in
23-24 setting a date for the preferential trial.
23-25 9. If the lienable amount of a lien claimant’s lien is the subject of
23-26 binding arbitration:
23-27 (a) The court may, at the request of a party to the arbitration, stay the
23-28 lien claimant’s action to foreclose the lien pending the outcome of the
23-29 binding arbitration. If the foreclosure on the lien involves the rights of
23-30 other lien claimants or persons whose claims are not the subject of the
23-31 binding arbitration, the court may stay the lien claimant’s foreclosure
23-32 proceeding only upon terms that are just and which afford the lien
23-33 claimant a fair opportunity to protect his lien rights and priorities with
23-34 respect to other lien claimants and persons.
23-35 (b) Upon the granting of an award by the arbitrator, any party to the
23-36 arbitration may seek an order from the court in the action to foreclose on
23-37 the lien confirming or adopting the award and determining the lienable
23-38 amount of the lien claimant’s lien in accordance with the order, if any.
23-39 Upon determining the lienable amount, the court shall enter a judgment
23-40 or decree for the lienable amount, plus all amounts that may be awarded
23-41 by the court to the lien claimant pursuant to NRS 108.237, and the court
23-42 may include as part of the lien all costs and attorney’s fees awarded to
23-43 the lien claimant by the arbitrator and all costs and attorney’s fees
23-44 incurred by the lien claimant pertaining to any application or motion to
23-45 confirm, adopt, modify or correct the award of the arbitrator. A judgment
23-46 or decree entered by the court pursuant to this subsection may be
23-47 enforced against the property as provided in subsections 10, 11 and 12.
23-48 10. On ascertaining the whole amount of the liens with which the
23-49 [premises are] property is justly chargeable, as provided in NRS 108.221 to
24-1 108.246, inclusive, and sections 2 to 26, inclusive, of this act, the court
24-2 shall cause the [premises] property to be sold in satisfaction of [the] all
24-3 liens and the costs[, including costs of suit,] of sale, including all
24-4 amounts awarded to all lien claimants pursuant to NRS 108.237, and any
24-5 party in whose favor judgment may be rendered may cause the [premises]
24-6 property to be sold within the time and in the manner provided for sales on
24-7 execution, issued out of any district court, for the sale of real property.
24-8 [7.] 11. If the proceeds of sale, after the payment of the costs[,] of
24-9 sale, are not sufficient to satisfy [the whole amount of the] all liens to be
24-10 included in the decree of sale, including all amounts awarded to all lien
24-11 claimants pursuant to NRS 108.237, the proceeds must be apportioned
24-12 according to the right of the [several parties.] various lien claimants. If the
24-13 proceeds of the sale amount to more than the sum of [the] all liens and the
24-14 cost of sale, the remainder must be paid over to the owner of the property.
24-15 [8.] 12. Each party whose claim is not satisfied in the manner
24-16 provided in this section is entitled to personal judgment for the residue
24-17 against the party legally liable for it if that person has been personally
24-18 summoned or has appeared in the action.
24-19 Sec. 44. NRS 108.2413 is hereby amended to read as follows:
24-20 108.2413 A [mechanic’s lien of record upon real property] notice of
24-21 lien may be released upon the posting of a surety bond in the manner
24-22 provided in NRS 108.2415 to 108.2425, inclusive.
24-23 Sec. 45. NRS 108.2415 is hereby amended to read as follows:
24-24 108.2415 The [debtor of the lien claimant or a party in interest in the
24-25 premises subject to the lien must obtain a surety bond executed by the]
24-26 debtor of the lien claimant or a party in interest in the [premises] property
24-27 subject to the lien, as principal, and [executed by] a corporation authorized
24-28 to transact surety business in this state, as surety, shall execute a surety
24-29 bond in [substantially] the following form:
24-30 (Title of court and cause, if action has been commenced)
24-31 WHEREAS, ................................ (name of [owner, contractor, or other
24-32 person disputing lien)] principal) desires to give a bond for releasing the
24-33 following described [real] property from that certain [claim of mechanic’s]
24-34 notice of lien in the sum of $................ recorded ..... (month) ..... (day) .....
24-35 (year) in the office of the recorder in ................................ (name of county
24-36 where the [real] property is [situated):] located):
24-37 (legal description)
24-38 NOW, THEREFORE, the undersigned principal and surety do hereby
24-39 obligate themselves to the lien claimant named in the [mechanic’s] notice
24-40 of lien, ................................, (name of lien claimant) under the conditions
24-41 prescribed by NRS 108.2413 to 108.2425, inclusive, in the sum of
24-42 $................ (1 1/2 x claim), from which sum they will pay the lien claimant
24-43 [such] that amount as a court of competent jurisdiction may adjudge to
24-44 have been secured by his lien, [with interest, costs and attorney’s fees.]
24-45 including the total amount awarded pursuant to NRS 108.237.
25-1 IN TESTIMONY WHEREOF, the principal and surety have executed this
25-2 bond at ................................, Nevada, on the ....... day of the month of .......
25-3 of the year .......
25-4 ....................................
25-5 (Signature of Principal)
25-6 (SURETY CORPORATION)
25-7 BY.....................................
25-8 (Its Attorney in Fact)
25-9 State of Nevada }
25-10 }ss.
25-11 County of............ }
25-12 On ..... (month) ..... (day) ..... (year) before me, the undersigned, a notary
25-13 public of this county and state, personally appeared .................................
25-14 who acknowledged that he executed the foregoing instrument as principal
25-15 for the purposes therein mentioned and also personally appeared
25-16 ................................ known (or satisfactorily proved) to me to be the
25-17 attorney in fact of the [corporation] surety that executed the foregoing
25-18 instrument, known to me to be the person who executed that instrument on
25-19 behalf of the [corporation] surety therein named, and he acknowledged to
25-20 me that [that corporation] the surety executed the foregoing instrument.
25-21 .........................................
25-22 (Notary Public in and for
25-23 the County and State)
25-24 Sec. 46. NRS 108.2417 is hereby amended to read as follows:
25-25 108.2417 1. A petition for the release of a [mechanic’s] notice of
25-26 lien must be filed in the district court in the county in which the property
25-27 is located and set forth:
25-28 (a) The title of the cause, thus: “In the matter of the petition of
25-29 ................................ (name of petitioner) for release of [mechanic’s] notice
25-30 of lien of .............................. (name of [mechanic’s] lien claimant) upon
25-31 posting surety bond.”
25-32 (b) An allegation of the purchase of by payment of the premium for the
25-33 bond, and the dates of purchase and payment. A copy of the receipt for
25-34 payment of the premium for the bond must be attached to the petition.
25-35 (c) An allegation incorporating [any] by reference a true copy of the
25-36 bond, which copy must be attached to the petition.
25-37 (d) The name or names of the owner [or reputed owners] of the [land]
25-38 property subject to the notice of lien.
25-39 (e) A description of the [real] property subject to the notice of lien, and
25-40 the book and document number of the notice of lien as given by the county
25-41 recorder’s office[.] of the county in which the property is located.
25-42 (f) A prayer for an order releasing the notice of lien.
25-43 2. The petitioner shall obtain an order from a judge of the district court
25-44 setting forth the time and date of the hearing on the petition, which time
25-45 and date must be at least [5] 15 days after the date of the order and not
25-46 more than [10] 30 days after the date of the order.
26-1 3. A copy of the petition and a copy of the order must be served on the
26-2 lien claimant at least 2 days [before the date set for the hearing,] after the
26-3 court issues the order and must be served in the manner provided by law
26-4 for service of summons.
26-5 Sec. 47. NRS 108.2419 is hereby amended to read as follows:
26-6 108.2419 1. Upon the hearing, the court shall enter its order
26-7 releasing the [mechanic’s] notice of lien upon the petitioner’s [filing] :
26-8 (a) Filing in open court the original bond[, and introducing] which
26-9 must be in the form required by NRS 108.2415; and
26-10 (b) Introducing in evidence a receipt for payment of the premium.
26-11 2. The entry of the order by the court must refer to the property which
26-12 is the subject of the notice of lien and the notice of lien itself, by document
26-13 number and book number, and must recite that the notice of lien is released
26-14 of record for all purposes to the same extent as if released of record by the
26-15 [lienor.] lien claimant.
26-16 3. Upon entry of the order, the lien is released of record in its entirety
26-17 and for all purposes and the [real] property, the subject of the lien, released
26-18 from the encumbrances of the notice of lien.
26-19 4. There is no appeal from the entry of the order and upon entry the
26-20 order is final for all purposes.
26-21 Sec. 48. NRS 108.2421 is hereby amended to read as follows:
26-22 108.2421 1. The lien claimant is entitled to bring an action against
26-23 [the lien claimant’s debtor and to join therein] , or if an action has been
26-24 commenced, the lien claimant is entitled to join in the pending action, the
26-25 principal and surety on the bond[.] and the lien claimant’s debtor. A
26-26 judgment for [the] a lien claimant on the bond may not be made against the
26-27 property. [The rights of the lien claimant include and the court may award
26-28 to him in that action:
26-29 (a) The amount found due to the lien claimant by the court;
26-30 (b) The cost of preparing and filing the lien claim, including attorney’s
26-31 fees, if any;
26-32 (c) The costs of the proceedings;
26-33 (d) Attorney’s fees for representation of the lien claimant in the
26-34 proceedings; and
26-35 (e) Interest at a rate established pursuant to NRS 99.040 from the date
26-36 found by the court that the sum was due.
26-37 2. Proceedings pursuant to subsection 1 are entitled to priority of
26-38 hearing second only to criminal hearings. The plaintiff]
26-39 2. At any time after the filing of a joint case conference report
26-40 pursuant to Rule 16.1 of the Nevada Rules of Civil Procedure, or, if the
26-41 case is designated by the court as complex litigation, after the approval of
26-42 the initial case management order by the court, each lien claimant in the
26-43 action may serve upon the adverse party a “demand for [30-day setting,” in
26-44 the proper form,] a preferential trial setting” and file the demand with the
26-45 clerk of the court. Upon filing, the clerk of the court shall, before the
26-46 Friday after the demand is filed, vacate a case or cases in a department of
26-47 the court and set the lien claimant’s case for hearing, on a day or days
26-48 certain, to be heard within [30] 60 days after the filing of the “demand for
26-49 [30-day] a preferential trial setting.” Only one such preferential setting
27-1 need be given by the court, unless the hearing date is vacated without
27-2 stipulation of counsel for the [plaintiff] lien claimant in writing. If the
27-3 hearing date is vacated without that stipulation, upon service and filing, a
27-4 new preferential trial setting must be given.
27-5 3. A lien claimant shall, at the time of making his demand for a
27-6 preferential trial, and each other party to the preferential trial shall,
27-7 within 20 days after the lien claimant’s service of the demand, serve upon
27-8 all parties to the preferential trial the following documents and
27-9 information:
27-10 (a) A copy of all documents upon which the party intends to rely at the
27-11 time of the trial;
27-12 (b) A list of witnesses whom the party intends to call at the time of the
27-13 trial which must include for each witness:
27-14 (1) The name of the witness;
27-15 (2) The company identification and title of the witness; and
27-16 (3) A brief summary of the expected testimony of the witness;
27-17 (c) Any supplemental discovery responses as required by the Nevada
27-18 Rules of Civil Procedure;
27-19 (d) The identity of each person whom the party expects to call as an
27-20 expert witness at the trial, together with a statement of the substance of
27-21 the facts and opinions to which the expert witness is expected to testify
27-22 and a summary of the grounds for each opinion;
27-23 (e) Any expert reports not previously disclosed; and
27-24 (f) A detailed summary of all claims, offsets and defenses that the
27-25 party intends to rely upon at trial.
27-26 4. Within 20 days after receipt of an opposing party’s identification
27-27 of an expert witness, a party who desires to do so must identify each
27-28 person whom the party expects to call as a rebuttal expert witness at trial,
27-29 and must provide a statement of the substance of the facts and opinions
27-30 to which the rebuttal expert witness is expected to testify and a summary
27-31 of the grounds for each opinion.
27-32 5. A prevailing lien claimant on a claim against a bond must be
27-33 awarded the lienable amount plus the total amount that may be awarded
27-34 by the court pursuant to NRS 108.237.
27-35 Sec. 49. NRS 108.2423 is hereby amended to read as follows:
27-36 108.2423 1. By entering into a bond given pursuant to NRS
27-37 108.2415, the surety submits himself to the jurisdiction of the court in
27-38 which the bond is filed in the proceeding or release of the lien, and the
27-39 surety irrevocably appoints the clerk of that court as its agent upon whom
27-40 any papers affecting its liability on the bond may be served. [Its] The
27-41 liability of the surety may be enforced on motion without necessity of an
27-42 independent action. The motion and such notice of motion as the court
27-43 prescribes may be served on the clerk of the court, who shall forthwith mail
27-44 copies to the surety if his address is known.
27-45 2. The motion described in subsection 1 must not be instituted until
27-46 [the lapse of] 30 days [following] after:
27-47 (a) If a notice of appeal from the judgment is not filed, the giving of
27-48 notice of entry of judgment in the action against the lien claimant’s debtor,
27-49 [if no notice of appeal from the judgment is filed, nor may the motion be
28-1 instituted until the lapse of 30 days following] or the giving of notice of
28-2 entry of judgment in an action against the principal and surety on the
28-3 bond, if the lien claimant’s debtor was not joined therein; or
28-4 (b) If an appeal has been taken from the judgment, the filing of the
28-5 remittitur from the supreme court . [, if an appeal has been taken from the
28-6 judgment.]
28-7 Sec. 50. NRS 108.2425 is hereby amended to read as follows:
28-8 108.2425 1. The lien claimant may, within [2] 15 days after the
28-9 service of a copy of the petition and a copy of the bond attached thereto,
28-10 file with the clerk of the court in the action a notice excepting to the
28-11 sufficiency of the surety on the bond, and shall, at the same time and
28-12 together with that notice, file an affidavit setting forth the grounds and
28-13 basis of the exceptions to the surety, and shall serve a copy of the notice
28-14 and a copy of the affidavit upon the attorney or the petitioner [on the same
28-15 date as] within 2 days after the date of filing. A hearing must be had upon
28-16 the justification of the surety at the same time as that set for the hearing on
28-17 the petition for the order to release the notice of lien.
28-18 2. If , during the time a bond is posted pursuant to NRS 108.2415 to
28-19 108.2425, inclusive, the surety becomes unauthorized to transact surety
28-20 business in this state pursuant to NRS 679A.030, or should the surety’s
28-21 rating with Standard and Poor’s Ratings Services or A.M. Best Company
28-22 be downgraded to lower than an “A” rating, or if good cause otherwise
28-23 exists therefor, a lien claimant [fails to file and serve the notice and
28-24 affidavit within 2 days after the service of the petition for release of the
28-25 lien, he shall be deemed to have waived all objection to the justification
28-26 and sufficiency of the surety.] or other person having an interest in the
28-27 bond may apply to the district court in a pending action or commence an
28-28 action if none is pending for an order to require additional security, or to
28-29 change, substitute or add sureties, or to enforce or change any other
28-30 matter affecting the security provided by the bond. This section does not
28-31 authorize or require the reduction of any bond to an amount less than
28-32 1.5 times the amount of the lien claimant’s notice of lien. If the court
28-33 finds that the amount of the bond is insufficient to pay the total amount
28-34 that may be awarded by the court pursuant to NRS 108.237, the court
28-35 shall increase the amount of the bond to 1.5 times that amount. Any
28-36 surety who posts or consents to the posting of a surety bond shall remain
28-37 fully liable on the bond regardless of the payment or nonpayment of any
28-38 bond premium.
28-39 Sec. 51. NRS 108.243 is hereby amended to read as follows:
28-40 108.243 1. Any notice of lien may be assigned in the same manner
28-41 as any other chose in action after it has been perfected by recording.
28-42 2. [No] An assignment of a lien [prior to recording shall] before
28-43 recording will not be effective until written notice of the assignment has
28-44 been given to the owner by the assignee. [Any such notice shall] The
28-45 notice will be sufficient if delivered in person or mailed by certified mail to
28-46 the [person named as owner in the building permit.] owner. After such
28-47 notice the assignee may perfect the lien in his own name.
28-48 3. [Two] One or more lien claimants of the same class may assign
28-49 their notices of lien [claims] by written assignment, signed by each
29-1 assignor, to any other person or lien claimant of the same class, and the
29-2 assignee may commence and prosecute the action upon all of the notices of
29-3 lien [claims] in his own name[.] or in the name of the original lien
29-4 claimant.
29-5 4. In the event that a claim for which a lien may be filed is assigned
29-6 before it is perfected, such an assignment [shall] must not discharge or
29-7 defeat the right to perfect [such] the lien, if [such] the claim is reassigned
29-8 to the lien claimant, and thereafter [such lien claim] the lien is timely
29-9 perfected.
29-10 Sec. 52. NRS 108.2433 is hereby amended to read as follows:
29-11 108.2433 1. Except as otherwise provided in subsection 2, a notice
29-12 of lien [of record upon real] upon the property provided for in NRS
29-13 108.221 to 108.246, inclusive, and sections 2 to 26, inclusive, of this act
29-14 may be discharged by an entry on the margin of the record thereof, signed
29-15 by the [lienor] lien claimant orhis personal representative or assignee in
29-16 the presence of the recorder or his deputy, acknowledging the satisfaction
29-17 of or value received for the notice of lien and the debt secured thereby. The
29-18 recorder or his deputy shall subscribe the entry as witness. The entry has
29-19 the same effect as a discharge or release of the notice of lien acknowledged
29-20 and recorded as provided by law. The recorder shall properly index each
29-21 marginal discharge.
29-22 2. If the notice of lien has been recorded by a microfilm or other
29-23 photographic process, a marginal release may not be used and an
29-24 acknowledged discharge or release of the notice of lien must be recorded.
29-25 3. If the recorder or his deputy is presented with a certificate executed
29-26 by the [lienor] lien claimant or his personal representative or assignee,
29-27 specifying that the notice of lien has been paid or otherwise satisfied or
29-28 discharged, the recorder or his deputy shall discharge the notice of lien
29-29 upon the record.
29-30 Sec. 53. NRS 108.2437 is hereby amended to read as follows:
29-31 108.2437 1. As soon as practicable, but not later than 10 days after a
29-32 notice of lien [of record upon real] upon the property pursuant to NRS
29-33 108.221 to 108.246, inclusive, and sections 2 to 26, inclusive, of this act is
29-34 fully satisfied or discharged, the [lienor] lien claimant shall cause to be
29-35 recorded a discharge or release of the notice of lien in substantially the
29-36 following form:
29-37 Discharge or Release of Notice of Lien
29-38 NOTICE IS HEREBY GIVEN THAT:
29-39 The undersigned did, on the ....... day of the month of ....... of the year
29-40 ......., record in Book ............, as Document No. ............, in the office of the
29-41 county recorder of ............. County, Nevada, its Notice of Lien, or has
29-42 otherwise given notice of his intention to hold [and claim] a lien upon the
29-43 following described property[,] or improvements, owned or purportedly
29-44 owned by ..............., [situated] located in the County of ............, State of
29-45 Nevada, to wit:
30-1 (Legal Description or Address of the Property[)] or Improvements)
30-2 NOW, THEREFORE, for valuable consideration the undersigned
30-3 does release, satisfy and discharge [the claim or] his notice of lien on the
30-4 property or improvements described above by reason of [such] this Notice
30-5 of Lien . [, or by reason of the work and labor on, or materials furnished
30-6 for, that property.]
30-7 ..............................................
30-8 (Signature of [Lienor)] Lien Claimant)
30-9 2. If the [lienor] lien claimant fails to comply with the provisions of
30-10 subsection 1, he is liable in a civil action to the owner of the [real]
30-11 property, his heirs or assigns for any actual damages caused by his failure
30-12 to comply with those provisions or $100, whichever is greater, and for a
30-13 reasonable attorney’s fee and the costs of bringing the action.
30-14 Sec. 54. NRS 108.244 is hereby amended to read as follows:
30-15 108.244 A lien claimant or assignee of a lien claimant or claimants
30-16 may not file a complaint for foreclosure of his [mechanic’s] notice of lien
30-17 or the assigned [mechanic’s] notice of lien or [mechanics’ liens] notices of
30-18 lien until 30 days have expired immediately following the filing of his
30-19 [mechanic’s] notice of lien or following the filing of the assigned
30-20 [mechanic’s] notice of lien or the last of the assigned [mechanics’ liens.]
30-21 notices of lien. This provision [shall] does not apply to nor prohibit the
30-22 filing of any statement of fact constituting a lien or statements of fact
30-23 constituting a lien in an already filed action for foreclosure of
30-24 [mechanic’s] a notice of lien and to comply with the provisions of NRS
30-25 108.239.
30-26 Sec. 55. NRS 108.245 is hereby amended to read as follows:
30-27 108.245 1. Except as otherwise provided in subsection 5, every
30-28 [person, firm, partner-ship, corporation or other legal entity,] lien claimant,
30-29 other than one who performs only labor, who claims the benefit of NRS
30-30 108.221 to 108.246, inclusive, and sections 2 to 26, inclusive, of this act
30-31 shall[, within 31 days after the first delivery of material or performance of
30-32 work or services under his contract,] deliver in person or by certified mail
30-33 to the owner [or reputed owner of the property or to the person whose
30-34 name appears as owner on the building permit, if any, for] of the
30-35 improvement a preliminary notice of right to lien in substantially the
30-36 following form:
30-37 Preliminary Notice of Right to Lien to Owner of Materials
30-38 Supplied or Work [or Services] Performed
30-39 To: ...........................
30-40 (Owner’s name and address)
31-1 The undersigned notifies you that he has supplied materials or
31-2 performed work [or services] as follows:
31-3 ............................................................................
31-4 (General description of materials[, work or services
31-5 and anticipated total value)] supplied or work performed)
31-6 for improvement of real property identified as (property description or
31-7 street address) under contract with (general contractor or subcontractor).
31-8 This is not a notice that the undersigned has not been or does not expect to
31-9 be paid, but a notice required by law that the undersigned may, at a future
31-10 date, [claim] record a notice of lien as provided by law against the property
31-11 or any improvement if the undersigned is not paid.
31-12 .........................................
31-13 [(] (Lien Claimant)
31-14 A subcontractor [or materialman under a subcontract] who gives such a
31-15 notice must also deliver in person or send by certified mail a copy of the
31-16 notice to [the general] his prime contractor for information only. The
31-17 failure by a subcontractor to deliver [such] the notices to the [general]
31-18 prime contractor is a ground for disciplinary proceedings against the
31-19 subcontractor under chapter 624 of NRS[.] but does not invalidate the
31-20 notice to the owner.
31-21 2. Such a notice does not constitute a lien or give actual or constructive
31-22 notice of a lien for any purpose.
31-23 3. No lien for materials or equipment furnished or for work [or
31-24 services] performed, except labor, may be perfected or enforced pursuant
31-25 to NRS 108.221 to 108.246, inclusive, [unless the] and sections 2 to 26,
31-26 inclusive, of this act for work, materials or equipment furnished more
31-27 than 31 days before:
31-28 (a) The date on which a preliminary notice of right to lien has been
31-29 given[.] as provided in this section; or
31-30 (b) The owner obtains notice or knowledge of the work, materials or
31-31 equipment the lien claimant furnished for the work of improvement.
31-32 4. The notice need not be verified, sworn to or acknowledged.
31-33 5. A [general] prime contractor or other person who contracts directly
31-34 with an owner or sells materials directly to an owner is not required to give
31-35 notice pursuant to this section.
31-36 [6. As used in this section, “owner” does not include any person, firm
31-37 or corporation whose only interest in the real property is under a mortgage,
31-38 deed of trust or other security arrangement.]
31-39 Sec. 56. NRS 108.246 is hereby amended to read as follows:
31-40 108.246 1. Each [general] prime contractor shall, before execution of
31-41 a contract for construction, inform the [record] owner with whom he
31-42 intends to contract of the provisions of NRS 108.245 in substantially the
31-43 following form:
31-44 To:...........................
31-45 (Owner’s name and address)
32-1 [Section 108.245 of Nevada Revised Statutes,] The provisions of NRS
32-2 108.245, a part of the mechanics’ and materialmen’s lien law of the State
32-3 of Nevada, [requires,] require, for your information and protection from
32-4 hidden liens, that each person or other legal entity [which] who supplies
32-5 materials to or performs work [or services] on a construction project, other
32-6 than one who performs only labor, shall deliver to the owner a notice of the
32-7 materials and equipment supplied or the work [or services] performed.
32-8 You may receive [such] these notices in connection with the construction
32-9 project which you propose to undertake.
32-10 2. Each [general] prime contractor shall deliver a copy of the
32-11 information required by subsection 1 to each subcontractor who
32-12 participates in the construction project.
32-13 3. The failure of a [general] prime contractor so to inform owners and
32-14 subcontractors with whom he contracts is a ground for disciplinary
32-15 proceedings under chapter 624 of NRS . [.
32-16 4. Each subcontractor who participates in the construction project shall
32-17 deliver a copy of each notice required by NRS 108.226 to the general
32-18 contractor. The failure of the subcontractor to deliver such notice to the
32-19 general contractor is a ground for disciplinary proceedings under chapter
32-20 624 of NRS.]
32-21 Sec. 57. NRS 624.3016 is hereby amended to read as follows:
32-22 624.3016 The following acts or omissions, among others, constitute
32-23 cause for disciplinary action under NRS 624.300:
32-24 1. Any fraudulent or deceitful act committed in the capacity of a
32-25 contractor.
32-26 2. A conviction of a violation of NRS 624.730 or a felony or a crime
32-27 involving moral turpitude.
32-28 3. Knowingly making a false statement in or relating to the recording
32-29 of a notice of lien pursuant to the provisions of NRS 108.226.
32-30 4. Failure to give a notice required by NRS 108.227, 108.245 or
32-31 108.246.
32-32 5. Failure to comply with NRS 597.713, 597.716 or 597.719 or any
32-33 regulations of the board governing contracts for the construction of
32-34 residential pools and spas.
32-35 6. Failure to comply with NRS 624.600.
32-36 7. Misrepresentation or the omission of a material fact, or the
32-37 commission of any other fraudulent or deceitful act, to obtain a license.
32-38 8. Failure to pay an assessment required pursuant to NRS 624.470.
32-39 Sec. 58. NRS 108.223, 108.2231and 108.224 are hereby repealed.
32-40 Sec. 59. Sections 25 and 26 of this act apply only to agreements
32-41 entered into after October 1, 2001.
33-1 TEXT OF REPEALED SECTIONS
33-2 108.223 Lien on lot or tract of land for improvements made at
33-3 request of owner. Any person who, at the request of the owner of any
33-4 lot or tract of land, or his agent, grades, fills in, installs a system for
33-5 irrigation, seeds, plants, lays sod, landscapes or otherwise improves the lot
33-6 or tract of land, or the street in front of or adjoining it, has a lien upon it
33-7 for the work done and materials furnished.
33-8 108.2231 Lien on real property, building, structure or
33-9 improvement thereon for services rendered at request of owner.
33-10 1. Any person who, at the request of the owner of any real property,
33-11 building, structure or improvement thereon, or his agent, performs services
33-12 as an engineer, land surveyor or geologist in relation to that real property,
33-13 building, structure or improvement thereon, has a lien upon it for the work
33-14 done and materials furnished.
33-15 2. The amount of the lien is:
33-16 (a) If the parties entered into a contract, the unpaid balance of the price
33-17 agreed upon; or
33-18 (b) In the absence of a contract, an amount equal to the fair market
33-19 value of the labor performed or material furnished, including a reasonable
33-20 allowance for overhead and profit.
33-21 108.224 Land subject to lien. The land occupied by any building or
33-22 other superstructure, railroad, tramway, toll road, canal, water ditch,
33-23 flume, aqueduct or reservoir, bridge or fence, together with a convenient
33-24 space about the same, or so much as may be required for the convenient
33-25 use and occupation thereof, to be determined by the court on rendering
33-26 judgment, is also subject to the lien, if at the commencement of the work,
33-27 or of the furnishing of the materials for the same, the land belonged to the
33-28 person who caused the building, improvement or structure to be
33-29 constructed, altered or repaired; but if such person owned less than a fee
33-30 simple estate in such land, then only his interest therein is subject to such
33-31 lien.
33-32 H