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What Is A Mechanics Lien And Why Is It Important?

On Behalf of | Dec 15, 2022 | Business Legal Issues, Mechanics Liens

What Is A Mechanics Lien?

A Mechanics Lien is a legal tool that ensure contractors and other professionals who have provided labor or materials to a property secure payment. If you’re a contractor, subcontractor, supplier, or homeowner, you must be familiar with mechanics lien laws and how they work.

Please keep reading about Mechanics Liens, how they can help a contractor get paid, and how property owners can use lien waivers to protect themselves.

4 Issues A Mechanics Lien Attorney Helps You Avoid

A Mechanics Lien Is A Legal Claim That Is Filed By Contractors, Subcontractors, and Suppliers For Non-Payment

A mechanics lien is an important legal measure for contractors, subcontractors, and suppliers to have in their toolkits. A mechanics lien provides safety net protection in case of nonpayment as it gives the contractor, subcontractor, and supplier a secured interest in a real property or other assets of the property owner when they provide materials or labor and do not get paid.

When recording a Mechanics Lien, it is crucial to understand the local laws and regulations and any time limits on recording. Educating yourself about this process can save time and money if you ever need to use it. It’s a worthwhile consideration for those that work in construction and other trades related to improving properties.

Let the MAY BROCK LAW GROUP assist you with a Mechanics Lien if you need to get paid by a property owner.

A Mechanics Lien Allows Subcontractors To Collect Payment For The Work They Have Already Completed On A Property

Mechanics Liens are an invaluable tool for contractors, subcontractors, and material suppliers. A Mechanics Lien ensures that contractors who put in the hard work and hours into a job can be confident that they will be paid for their efforts. By recording a Mechanics Lien against the property they’ve worked on, after not receiving payment per their contract terms, they can protect their right to get paid.

Mechanics Liens are one of the most reliable ways that contractors can secure their right to get paid the wages they have earned fairly and faithfully. Mechanics Liens provide peace of mind to those seeking payment and act as a security blanket for cases when property owners decide not to pay after the labor and materials have been provided to the property.

These laws were enacted by the Nevada legislature years ago to protect contractors, subcontractors, suppliers, and homeowners, if they follow the rules set forth by the Nevada Legislature.

To Record A Mechanics Lien, All Claimants Without Contracts Directly with the Property Owner Must Send A Pre-Lien Notice To The Owner

All subcontractors and suppliers who do not have a contract directly with the Owner must provide the property owner with a notice of right to lien within 31-days of providing labor or materials to the project.  This must be done for both residential and commercial projects.

The purpose of this is to make sure that the Owner is made aware of each subcontractor and material supplier on the Project, and that the Owners can then protect themselves against the general contractor failing to pay the subcontractors and suppliers after the owner pays the contractor.

The MAY BROCK LAW GROUP can help contractors, subcontractors, suppliers, and homeowners ensure that the proper lien waivers and releases are provided during the payment process.  If you have any questions, please contact the firm before it is too late.

To Record A Mechanics Lien, The Claimant Must First Send A Notice Of Their Intention To Do So

Before initiating the Mechanics Lien process, for residential properties, all parties involved must know what lies ahead. That’s why before recording a Mechanics Lien, the lien claimant must alert other parties by issuing a notice of intent to lien.

For a subcontractor or supplier, they should send the notice of intent to both the homeowner and the general contractor for the project.  For commercial projects, the Notice of Intent to Lien is not required, but many times could be used to notify the owner of non-payment issues.

Although this step may be optional in some states, depending on what role you play in the construction process, this practice is highly recommended and required in many jurisdictions across the country.

By taking this important step, both the lien claimant and those affected are protected legally, and all parties are fully informed about the project details and payment terms. Ultimately, in providing the proper notices, it helps ensure fairness and transparency throughout the entire process for all parties involved.

If you are involved in a project which requires payment, then it is vital that you understand your rights as a lienor and what you have to do to keep those rights available if needed. Many times, a Notice of Intent to Lien can be crucial to secure your payment. It also allows the property owner or other people involved in the project to respond before a formal lien is recorded.

In Nevada, all lienors must send out the Notice of Intent to Lien prior to recording a Notice of Lien against a property, if the Project is residential construction.  Thus, to record correctly and respectfully, this must be done so everyone knows the situation and can prepare for potential future steps.

Sending out a Notice of Intent to Lien is a responsible way of notifying owners on residential project that the lienor is seeking to obtain fair compensation for work completed and supplies provided.  Again, if the project is commercial, no Notice of Intent to Lien is required prior to recording a lien, though many times it may be a good idea to do to get the parties talking of payment.

The MAY BROCK LAW GROUP can help you prepare your Mechanics Lien and any required notices for any type of construction projects in Nevada. Give us a call as soon as humanly possible to help you get paid what you are owed.

If A Potential Mechanics Lien Claimant Does Not Receive Payment, They Can Record A Mechanics Lien Against The Property Owner and possibly force the sale of the Property

When a Mechanics Lien Claimant does not receive payment for its services and materials, the Lien Claimant has the legal right to take further action, if needed. The option to record a Mechanics Lien is the first step after all required notices have been sent to the proper parties.

The next step a Lien Claimant may take is to file a lawsuit against the property owner to enforce their Mechanics Lien rights. Still, it should only be used as a last resort if all other attempts to collect their rightful payment have been unsuccessful.

Everyone has the right to seek payment for services rendered. A lien claimant should protect their valuable lien rights by ensuring that all of their pre-lien requirements and obligations are handled effectively and appropriately.

Providing the proper notices are served required parties, Nevada’s mechanics lien laws can ensure that the contractor, subcontractor, and material supplier is properly compensated and credit for the labor and materials are received.

If you are a property owner, you should use Nevada’s Mechanics lien laws to ensure all subcontractors and material suppliers providing labor and materials to your project are properly paid and that you will not have to pay twice for the same work, labor, and materials.

If you’re a Contractor, Subcontractor, or Supplier and need help getting paid by a Property Owner, then contact the MAY BROCK LAW GROUP in the Las Vegas Metro Area for advice and legal guidance toward getting you paid promptly.

The quicker you call us, the better it will be for your case and to protect your valuable lien rights.  The sooner we speak, the more likely you are to ensure that your lien rights remain valid and enforceable.

Can Mechanics Liens Be Placed On Both Residential And Commercial Properties?

Mechanics Liens provide an effective way for contractors, subcontractors, and suppliers to protect their right to payment on a job. A Mechanics Lien can be placed on the property for both residential and commercial properties if a lien claimant is waiting for payment.

Mechanics Liens are an essential tool for contractors to have at their disposal, as it provides security that they will receive the money they are rightly owed.

It is important to note that Mechanics Liens must be backed up by the proper notices and then recorded with the proper authority to remain valid. Proper recording ensures that all parties take responsibility for their actions and act in good faith.

With the help of a Mechanics Lien, all lien claimants providing services and/or materials related to a project on real property can ensure their voices are heard and protected.

What Should A Property Owner Do If They’re Faced With A Potential Mechanics Lien On Their Property?

When a property owner faces a potential mechanics lien, the most important thing is to investigate all the facts and details surrounding the situation. This can help inform any decision that must be made related to the lien and payments.

Property owners should also carefully review any contract they have with the contractor, as the contractor is required by Nevada law to provide valuable insight into payment deadlines and terms of the agreement on residential projects.

For commercial projects, Nevada law does not require as many notices be provided by the general contractor, so commercial project owners need to make sure they understand Nevada’s lien laws before the project begins to protect themselves.

Communicating directly with the contractor is essential to resolve the issue quickly and fairly once notice of non-payment is provided by any subcontractor or material supplier.

A Mechanics Lien can be a powerful tool for contractors. Still, property owners can use these same laws to benefit themselves if they know their rights and responsibilities.

Property owners can ensure their interests are protected by understanding their rights and obligations and taking steps to work through the issues collaboratively and to require the proper lien releases throughout the project. This way, all parties involved can be protected and treated fairly.

If you’re a property owner and you are faced with a potential mechanics lien, please get help from an attorney knowledgeable about Mechanics Liens.

A knowledgeable attorney can help you by advising and handling any issues that may arise and may even help the owner avoid a mechanics lien being recorded against their property, if presented with the proper facts. The MAY BROCK LAW GROUP can help you navigate a Mechanics Lien challenge, so please do not wait until it is too late to call and get help.

Conclusion

At its core, a Mechanics Lien is an effective way for contractors, subcontractors, and material suppliers to protect their rights to payment on a project. However, it is important that everyone involved understands their duties and obligations, and that everyone works together to ensure the process runs smoothly.

The Notice of Intent to Lien and the Mechanics Lien itself can be powerful tools for anyone involved in a construction or renovation project. With the correct information and support, a Mechanics Lien can help provide everyone with the necessary protection.

If you’re having trouble getting paid for the work you’ve done on a property, or if you’re worried that someone might file a mechanics lien against your property, it’s essential to consult with an attorney as soon as possible so that you will know your legal rights.

A Nevada construction lawyer can help you understand your rights and guide you through the entire Mechanics Lien process, and maybe even resolving your Mechanics Lien troubles before a lien is recorded. With the proper guidance, you can ensure that your interests are respected, and that fair compensation is received.

Don’t hesitate to get in touch with the MAY BROCK LAW GROUP as soon as possible if a property owner hasn’t paid you or if you’ve received a Notice of Intent to Lien and you are unsure of how to proceed to protect your interests.

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