In Nevada, contractors have several rights when filing a mechanics lien. Contractors have the right to file a lien against the owner of the property for the full amount of the amount owed. They also have the right to obtain a court order to force the owner to pay the debt or to sell the property to satisfy the debt, if the owner does not voluntarily make payment.
Additionally, contractors are entitled to a lien on all labor, services, or materials provided for the construction improvements and the right to include interest, attorneys’ fees, and certain related costs with their lien.
Furthermore, contractors have the right to file a pre-lien notice if they are not listed as a lien claimant on the building permit and to provide this notice before filing their lien claim.
Contractors also have the right to submit their lien to the local district court to make it a first lien on the title of the property. They also can record a Certificate of Satisfaction to release the lien after they have been paid.
Lastly, the state of Nevada grants contractors the right of foreclosure if the owner does not pay within 30 days of filing the lien. Contractors can foreclose on their lien and can obtain title to the property if the owner does not make the payment.
Right to File a Lien Against the Property Owner
In Nevada, contractors have the right to file a lien against the owner of the property for the full amount of the debt owed. They can also obtain a court order to force the owner to pay the debt or to sell the property to satisfy the debt, if the owner does not pay voluntarily. Additionally, contractors are entitled to a lien on all labor, services, or materials provided for the construction improvements, and to include interest, attorneys’ fees, and certain related costs with their lien.
Right to Include Interest and Attorneys’ Fees with a Mechanics Lien
In Nevada, contractors have the right to include interest, attorneys’ fees, and certain related costs when filing a mechanics lien. This allows them to recoup more than the cost of the labor, materials, and services they provided in the construction project, and helps to ensure that they will be fully compensated if the owner does not pay voluntarily.
Right to File a Pre-Lien Notice in Nevada
In Nevada, contractors have the right to file a pre-lien notice if they are not listed as a lien claimant on the building permit, and to provide this notice before filing their lien claim. Filing a pre-lien notice provides the owner with advanced notice of the pending lien claim, which allows them to negotiate a resolution before the lien is filed and can help prevent disputes.
Right to Make Their Lien First on the Title of the Property
In Nevada, contractors have the right to submit their lien to the local district court to make it a first lien on the title of the property. This right gives contractors priority over other lien claimants, allowing them to be the first one in line to collect payment if the property must be sold to satisfy the debt.
Right to Record a Certificate of Satisfaction After Being Paid
In Nevada, contractors have the right to record a Certificate of Satisfaction to release the lien after they have been paid. This certificate serves as proof that the lien has been satisfied and clears the title of the property. This is a critical protection for contractors, allowing them to be confident they have been fully and properly compensated.
Right to Foreclose on the Lien
In Nevada, contractors have the right to foreclose on their lien if the owner does not pay within 30 days of filing the lien. This right allows contractors to take possession of the property if the owner does not make payment. Contractors can then obtain title to the property if the owner does not make the payment.
Key Differences Between Foreclosure on a Lien and Foreclosure in General
Foreclosure on a lien differs from general foreclosure in a few key aspects. Foreclosure on a lien takes place against an owner who has defaulted on a debt and failed to pay the lien claimant after the lien has been filed. This differs from standard foreclosure, which occurs as part of the regular mortgage process when an owner has defaulted on their mortgage payments. Additionally, foreclosure on a lien does not require a judicial process, while general foreclosure proceedings are typically handled in court. Lastly, foreclosure on a lien typically occurs within 30 days of a lien being filed, while a foreclosure process through a mortgage may take weeks or months to complete.
Key Takeaways
Contractors in Nevada have several key rights when it comes to filing mechanics liens, including their right to file a lien, including interest and attorneys’ fees, provide a pre-lien notice, make their lien first in the title of the property, record a Certificate of Satisfaction after payment, and foreclose on the lien. Contractors should always exercise these rights to protect their interests and ensure just compensation for the work they have provided. Foreclosure on a lien is different from general foreclosure in that it takes place against an owner who has defaulted on a debt, does not require a judicial process, and takes place within 30 days of a lien being filed.