Protecting Property Owners Against Mechanic’s Liens
A mechanic’s lien or Notice of Lien in Nevada is for contractors, subcontractors, design professionals and suppliers as a legal claim against real property in cases where they do not receive payment for their services. If there is a dispute between the general contractor and one of its subcontractors regarding payment of the services, a Notice of Lien can be placed against a person’s home or a commercial building even if the general contractor has been paid for its services.
At May Brock Law Group, we help protect property owners in Las Vegas against mechanic’s liens. With our vast experience in construction and contract law, we take measures early to protect your property and interests.
Understanding Mechanic’s Liens
Homeowners and business owners can be caught off-guard by mechanic’s liens if they do not protect themselves during construction. For example, property owners can be liable for mechanic liens when their general contractor fails to pay. If property owners do not protect themselves, they can become liable for paying for the work twice, or in a worst-case scenario, they can lose their interest in the property because of the liens against their properties.
While, at first, it may seem unfair and frustrating for property owners to be liable for paying for a general contractor’s nonpayment to its subcontractor, this is a common legal process throughout the United States. A mechanic’s lien guarantees that the individuals who have provided materials and services to enhance the property will receive payment.
When they fail to receive payment, contractors and subcontractors must notify the property owner of the potential mechanic’s lien. The property owner can sue the general contractor for reimbursement for any double payment. However, the legal process can take a long time, putting your property and finances at risk.
How Do Mechanic’s Liens Work?
In Nevada, a subcontractor or supplier who wants to maintain a right to lien a property must notify the owner of what is being supplied within 30 days of their contribution to the improvement. If payment is not received, they have the right to file a “Notice of Lien” on the property in the respective county.
The subcontractor or supplier will have six months to find a solution with the property owner or file a lawsuit to perfect the lien against the property. The lien will no longer be enforceable if the lawsuit is not filed within six months. If someone recorded a lien against a property and failed to file suit within the required six months, you should seek assistance from an attorney to get the lien removed from the county records. Otherwise, the property owner may have difficulties selling their property due to the recording of the lien.
Working With Contract Negotiations To Avoid Mechanic’s Liens
At May Brock Law Group, we have handled a variety of contract negotiations related to protecting property owners and contractors from having to deal with a mechanic’s lien. We believe the best place to focus on payment is before starting work on a property. Setting up clear and concise rules that govern the scope of work and payment process may prevent several problems down the road.
There are several legal issues to address while negotiating payment clauses including:
- Clear description of all documents and forms required for submittal of payment application process
- Clear deadlines for submitting payment applications and resulting consequences for failure to
- submit within the deadline
- Timeline for all payments
- Procedures for materials and verifying labor and materials
- Rules related to storage of materials
- Clear procedure for submitting bids for extra work
- Procedures for suspending or terminating a contract
With decades of experience assisting property owners in Las Vegas, you can trust our knowledge and skill in contract negotiation and construction law. With as much time, money and work you have put into your property, you should take every step necessary to protect it. At May Brock Law Group, we can help streamline those steps and protect your interests.
We Can Help Protect You And Your Property
If you need help protecting your property or have questions about the mechanic’s lien process in Nevada, we are here for you. Please contact our Las Vegas firm at 702-960-1270 or online to schedule a consultation and discuss your rights.