Senate Bill No. 93–Senator O’Donnell

February 9, 2001

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Referred to Committee on Judiciary

SUMMARY—Provides that notice of mechanic’s lien must include reference to previous liens involving same labor or materials for same property. (BDR 9‑74)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State: No.

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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; providing that a notice of mechanic’s lien must include a reference to any previously recorded lien involving the same labor or materials for the same property; 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. NRS 108.226 is hereby amended to read as follows:

1-2 108.226 1. Every person claiming the benefit of NRS 108.221 to

1-3 108.246, inclusive, must record his notice of lien in the form provided in

1-4 subsection 5:

1-5 (a) Within 90 days after the completion of the work of improvement;

1-6 (b) Within 90 days after the last delivery of material by the lien

1-7 claimant; or

1-8 (c) Within 90 days after the last performance of labor by the lien

1-9 claimant,

1-10 whichever is later.

1-11 2. The time within which to perfect the lien by recording the notice of

1-12 lien is shortened if a notice of completion is recorded in a timely manner

1-13 pursuant to NRS 108.228, in which event the notice of lien must be

1-14 recorded within 40 days after the recording of the notice of completion.

1-15 3. Any one of the following acts or events is equivalent to “completion

1-16 of the work of improvement” for all purposes of NRS 108.221 to 108.246,

1-17 inclusive:

1-18 (a) The occupation or use of a building, improvement or structure by the

1-19 owner, his agent or his representative and accompanied by cessation of

1-20 labor thereon.

1-21 (b) The acceptance by the owner, his agent or his representative of the

1-22 building, improvement or structure.

2-1 (c) The cessation from labor for 30 days upon any building,

2-2 improvement or structure, or the alteration, addition to or repair thereof.

2-3 (d) The recording of the notice of completion provided in NRS 108.228.

2-4 4. For the purposes of this section, if a work of improvement consists

2-5 of the construction of more than one separate building and each building is

2-6 constructed pursuant to:

2-7 (a) A separate contract, each building shall be deemed a separate work

2-8 of improvement. The time within which to perfect the lien by recording the

2-9 notice of lien pursuant to subsection 1 commences to run upon the

2-10 completion of each separate building; or

2-11 (b) A single contract, the time within which to perfect the lien by

2-12 recording the notice of lien pursuant to subsection 1 commences to run

2-13 upon the completion of all the buildings constructed pursuant to that

2-14 contract.

2-15 As used in this subsection, “separate building” means one structure of a

2-16 work of improvement and any garages or other outbuildings appurtenant

2-17 thereto.

2-18 5. The notice of mechanic’s lien must be recorded in the office of the

2-19 county recorder of the county where the property or some part thereof is

2-20 situated and must contain:

2-21 (a) A statement of his demand after deducting all just credits and

2-22 offsets.

2-23 (b) The name of the owner or reputed owner if known.

2-24 (c) The name of the person by whom he was employed or to whom he

2-25 furnished the material.

2-26 (d) A statement of the terms, time given and conditions of his contract.

2-27 (e) A description of the property to be charged with the lien sufficient

2-28 for identification.

2-29 (f) A reference to any previously recorded notice of mechanic’s lien

2-30 that:

2-31 (1) Has not been released or discharged; and

2-32 (2) Involves the same labor or materials for the same property.

2-33 6. The claim must be verified by the oath of the claimant or some other

2-34 person. The claim need not be acknowledged to be recorded.

2-35 7. It is unlawful for a person knowingly to make a false statement in or

2-36 relating to the recording of a notice of lien pursuant to the provisions of

2-37 this section. A person who violates this subsection is guilty of a gross

2-38 misdemeanor and shall be punished by a fine of not less than $5,000 nor

2-39 more than $10,000.

2-40 H