MECHANICS’ AND MATERIALMEN’S LIENS

108.221 “Work of Improvement” and “Improvement” Defined

108.222 Liens for Labor and Materials; Miners’ Liens; Contractors and Others Deemed Owners’ Agents

108.223 Lien on Lot or Tract of Land for Improvements Made at Request of Owner

108.2231 Lien on Real Property, Building, Structure or Improvement Thereon for Services Rendered at Request of Owner

108.224 Land Subject to Lien

108.225 Priority of Liens; Separate Work of Improvement

108.226 Notice of Lien: Time for Recording; Contents; Verification; Acts Constituting Completion of Work of Improvement; Work of Improvement Consisting of Construction of More Than One Separate Building

108.227 Service of Copy of Claim on Record Owner of Property; “record Owner” Defined

108.2275 Frivolous or Excessive Lien: Motion; Hearing; Consequences of Failure to Appear; Effect on Action to Foreclose; Order

108.228 Notice of Completion: Recording; Contents; Verification; Delivery of Copy to General Contractor and to Any Other Person Who Submits Request Before Notice is Recorded

108.229 Lien Not Invalidated by Mistakes in Claims; Amendments; Substitution of Defendants; Sufficiency of Notice of Lien

108.231 Claim Against Two or More Pieces of Property: Designation of Amount Due on Each

108.232 Claim to be Recorded; Fees of Recorder

108.233 Duration of Lien

108.234 Notice of Nonresponsibility: Filing by Owner or Claimant of Interest in Land

108.235 Amount Recoverable by Contractor; Defense of Action on Lien; Withholding Amount of Lien; Deduction or Recovery of Excess of Judgment and Costs

108.236 Court Must Declare Rank of Liens in Judgment; Application of Proceeds

108.237 Joinder of Parties Claiming Liens; Consolidation of Actions; Interest and Attorney’s Fees

108.238 Right to Maintain Personal Action for Debt Not Impaired

108.239 Actions on Liens: Complaint; Required Notices; Hearing and Judgment; Sale of Property

108.2413 Release of Lien on Real Property by Posting Surety Bond: Manner

108.2415 Release of Lien on Real Property by Posting Surety Bond: Form of Bond

108.2417 Release of Lien on Real Property by Posting Surety Bond: Petition for Release; Service of Copy of Petition

108.2419 Release of Lien on Real Property by Posting Surety Bond: Hearing on Petition; Contents and Effect of Order Releasing Lien

108.2421 Release of Lien on Real Property by Posting Surety Bond: Action Against Debtor and Surety; Preferential Settings

108.2423 Release of Lien on Real Property by Posting Surety Bond: Motion to Enforce Liability of Surety

108.2425 Release of Lien on Real Property by Posting Surety Bond: Exception to Sufficiency of Surety

108.243 Assignment of Liens

108.2433 Discharge of Lien: Marginal Entries; Discharge or Release Must be Recorded if Lien Recorded by Photographic Process; Presentation of Certificate Executed by Lienor or His Personal Representative or Assignee

108.2437 Discharge of Lien: Recording by Lienor; Form; Liability for Failure to Record

108.244 Limitation on Filing Complaint for Foreclosure of Mechanic’s Lien

108.245 Notice to Owner of Material Supplied or Work or Services Performed: Contents; Effect

108.246 Contractor to Advise Owner of Content of NRS 108.245; Subcontractors to Furnish Contractor Copy of Notice of Lien; Penalties

NEVADA STATUTES

108.221 “Work of Improvement” and “Improvement” Defined

As used in NRS 108.221 to 108.246, inclusive, unless the context otherwise requires, “work of improvement” or “improvement” means the entire structure or scheme of improvement as a whole.

108.222 Liens for Labor and Materials; Miners’ Liens; Contractors and Others Deemed Owners’ Agents

1. Every person who performs labor upon or furnishes material of the value of $50 or more, to be used in the construction, alteration or repair of any building, or other superstructure, railway, tramway, toll road, canal, water ditch, flume, aqueduct or reservoir, bridge, fence or any other structure has a lien upon the premises and any building, structure and improvement thereon for:

(a) If the parties entered into a contract, the unpaid balance of the price agreed upon for; or

(b) In absence of a contract, an amount equal to the fair market value of,

the labor performed or material furnished or rented, as the case may be, by each respectively, including a reasonable allowance for overhead and a profit, whether performed or furnished at the instance of the owner of the building or other improvement, or at the instance of his agent.

2. All miners, laborers and others who perform labor to the amount of $50 or more in or upon any mine, or upon any shaft, tunnel, adit or other excavation, designed or used to prospect, drain or work the mine, and all persons who furnish any timber or other material, of the value of $50 or more, to be used in or about a mine, whether performed or furnished at the instance of the owner of the mine or his agent, have, and may each respectively claim and hold, a lien upon that mine for:

(a) If the parties entered into a contract, the unpaid balance of the price agreed upon for; or

(b) In absence of a contract, an amount equal to the fair market value of, the labor so performed or material furnished, including a reasonable allowance for overhead and a profit.

3. Every contractor, subcontractor, engineer, land surveyor, geologist, architect, builder or other person having charge or control of any mining claim, or any part thereof, or of the construction, alteration or repair, either in whole or in part, of any building or other improvement, as these terms are used in subsection 1, shall be held to be the agent of the owner, for the purposes of NRS 108.221 to 108.246, inclusive.

108.223 Lien on Lot or Tract of Land for Improvements Made at Request of Owner

Any person who, at the request of the owner of any lot or tract of land, or his agent, grades, fills in, installs a system for irrigation, seeds, plants, lays sod, landscapes or otherwise improves the lot or tract of land, or the street in front of or adjoining it, has a lien upon it for the work done and materials furnished.

108.2231 Lien on Real Property, Building, Structure or Improvement Thereon for Services Rendered at Request of Owner

1. Any person who, at the request of the owner of any real property, building, structure or improvement thereon, or his agent, performs services as an engineer, land surveyor or geologist in relation to that real property, building, structure or improvement thereon, has a lien upon it for the work done and materials furnished.

2. The amount of the lien is:

(a) If the parties entered into a contract, the unpaid balance of the price agreed upon; or

(b) In the absence of a contract, an amount equal to the fair market value of the labor performed or material furnished, including a reasonable allowance for overhead and profit.

108.224 Land Subject to Lien

The land occupied by any building or other superstructure, railroad, tramway, toll road, canal, water ditch, flume, aqueduct or reservoir, bridge or fence, together with a convenient space about the same, or so much as may be required for the convenient use and occupation thereof, to be determined by the court on rendering judgment, is also subject to the lien, if at the commencement of the work, or of the furnishing of the materials for the same, the land belonged to the person who caused the building, improvement or structure to be constructed, altered or repaired; but if such person owned less than a fee simple estate in such land, then only his interest therein is subject to such lien.

108.225 Priority of Liens; Separate Work of Improvement

1. The liens provided for in NRS 108.221 to 108.246, inclusive, are preferred to:

(a) Any lien, mortgage or other encumbrance which may have attached after the time when the building, improvement or structure was commenced, work done, or materials were commenced to be furnished.

(b) Any lien, mortgage or other encumbrance of which the lienholder had no notice and which was unrecorded at the time the building, improvement or structure was commenced, work done, or the materials were commenced to be furnished.

For the purposes of this subsection, “work done” does not include any work commenced before on-site construction has started.

2. Except as otherwise provided in subsection 3, every mortgage or encumbrance imposed upon, or conveyance made of, property affected by the liens provided for in NRS 108.221 to 108.246, inclusive, between the time when the building, improvement, structure or work thereon was commenced, or the materials thereof were commenced to be furnished, and the expiration of the time fixed in NRS 108.221 to 108.246, inclusive, in which liens therefore may be recorded, whatever the terms of payment may be, are subordinate and subject to the liens in full authorized in NRS 108.221 to 108.246, inclusive, regardless of the date of recording the liens.

3. If any improvement at the site is provided for in a contract that is separate from any contract for the construction of a building or other structure, the improvement at the site shall be deemed a separate work of improvement and the commencement thereof does not constitute the commencement of the construction of the building or other structure. As used in this subsection, “improvement at the site” means:

(a) The demolition or removal of improvements, trees or other vegetation from;

(b) The drilling of test holes in;

(c) Grading, filling or otherwise improving; or

(d) Constructing or installing sewers or other public utilities on, any lot or tract of land or the street, highway or sidewalk in front of or adjoining any lot or tract of land. The term includes the construction of any vaults, cellars or rooms under the sidewalks or making improvements to the sidewalks in front of or adjoining any tract of land.

108.226 Notice of Lien: Time for Recording; Contents; Verification; Acts Constituting Completion of Work of Improvement; Work of Improvement Consisting of Construction of More Than One Separate Building

1. Every person claiming the benefit of NRS 108.221 to 108.246, inclusive, must record his notice of lien in the form provided in subsection 5:

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

(b) Within 90 days after the last delivery of material by the lien claimant; or

(c) Within 90 days after the last performance of labor by the lien claimant, whichever is later.

2. The time within which to perfect the lien by recording the notice of lien is shortened if a notice of completion is recorded in a timely manner pursuant to NRS 108.228, in which event the notice of lien must be recorded within 40 days after the recording of the notice of completion.

3. Any one of the following acts or events is equivalent to “completion of the work of improvement” for all purposes of NRS 108.221 to 108.246, inclusive:

(a) The occupation or use of a building, improvement or structure by the owner, his agent or his representative and accompanied by cessation of labor thereon.

(b) The acceptance by the owner, his agent or his representative of the building, improvement or structure.

(c) The cessation from labor for 30 days upon any building, improvement or structure, or the alteration, addition to or repair thereof.

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

4. For the purposes of this section, if a work of improvement consists of the construction of more than one separate building and each building is constructed pursuant to:

(a) A separate contract, each building shall be deemed a separate work of improvement. The time within which to perfect the lien by recording the notice of lien pursuant to subsection 1 commences to run upon the completion of each separate building; or

(b) A single contract, the time within which to perfect the lien by recording the notice of lien pursuant to subsection 1 commences to run upon the completion of all the buildings constructed pursuant to that contract.

As used in this subsection, “separate building” means one structure of a work of improvement and any garages or other outbuildings appurtenant thereto.

5. The notice of mechanic’s lien must be recorded in the office of the county recorder of the county where the property or some part thereof is situated and must contain:

(a) A statement of his demand after deducting all just credits and offsets.

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

(c) The name of the person by whom he was employed or to whom he furnished the material.

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

(e) A description of the property to be charged with the lien sufficient for identification.

6. The claim must be verified by the oath of the claimant or some other person. The claim need not be acknowledged to be recorded.

108.227 Service of Copy of Claim on Record Owner of Property; “record Owner” Defined

1. In addition to the requirements of NRS 108.226, a copy of the claim must be served upon the record owner of the property within 30 days after recording the notice of lien, in one of the following ways:

(a) By delivering a copy to the record owner personally;

(b) If he is absent from his place of residence, or from his usual place of business, by leaving a copy with some person of suitable age and discretion at either place and mailing a copy addressed to the record owner at his place of residence or place of business; or

(c) If his place of residence or business cannot be ascertained, or a person of suitable age or discretion cannot be found there, by:

(1) Fixing a copy in a conspicuous place on the property;

(2) Delivering a copy to a person there residing, if such a person can be found; and

(3) Mailing a copy addressed to the record owner at the place where the property is situated.

2. Failure to serve a copy of the claim upon a particular record owner does not invalidate a claim based on a valid service upon another record owner.

3. As used in this section, “record owner” means any person who holds an interest in real property or any improvement thereon evidenced by a conveyance or other instrument which transfers that interest to him and is recorded in the office of the county recorder of the county in which the real property is located, but does not include:

(a) A mortgagee;

(b) A trustee under, or a beneficiary of, a deed of trust; or

(c) The owner or holder of a lien encumbering real property or any improvement thereon.

(Added to NRS by 1965, 1161; A 1969, 1099; 1987, 99)

108.2275 Frivolous or Excessive Lien: Motion; Hearing; Consequences of Failure to Appear; Effect on Action to Foreclose; Order

1. The debtor of the lien claimant or a party in interest in the premises subject to the lien who believes the notice of lien is frivolous and was made without reasonable cause, or that the amount of the lien is excessive, may apply by motion to the district court for the county where the property or some part thereof is situated for an order directing the lien claimant to appear before the court to show cause why the relief requested should not be granted. The motion must set forth the grounds upon which relief is requested and must be supported by the affidavit of the applicant or his attorney setting forth a concise statement of the facts upon which the motion is based. If the court issues an order for a hearing, the applicant shall serve notice of the application and order of the court on the lien claimant within 3 days after the court issues the order. The court shall conduct the hearing within not less than 10 days or more than 20 days after the court issues the order.

2. The order for a hearing must include a statement that if the lien claimant fails to appear at the time and place noted, the lien will be released with prejudice and the lien claimant will be ordered to pay the costs requested by the applicant, including reasonable attorney’s fees.

3. If, at the time the application is filed, an action to foreclose the lien has not been filed, the clerk of the court shall assign a number to the application and obtain from the applicant a filing fee of $85. If an action has been filed to foreclose the lien before the application was filed pursuant to this section, the application must be made a part of the action to foreclose the lien.

4. If, after a hearing on the matter, the court determines that:

(a) The lien is frivolous and was made without reasonable cause, the court may issue an order releasing the lien and awarding costs and reasonable attorney’s fees to the applicant.

(b) The amount of the lien is excessive, the court may issue an order reducing the lien to an amount deemed appropriate by the court and awarding costs and reasonable attorney’s fees to the applicant.

(c) The lien is not frivolous and was made with reasonable cause and that the amount of the lien is not excessive, the court may issue an order awarding costs and reasonable attorney’s fees to the lien claimant.

5. Proceedings conducted pursuant to this section do not affect any other rights and remedies otherwise available to the parties.

108.228 Notice of Completion: Recording; Contents; Verification; Delivery of Copy to General Contractor and to Any Other Person who Submits Request Before Notice is Recorded

1. The owner may record a notice of completion after:

(a) The completion of any work of improvement; or

(b) There has been a cessation from labor thereon for a period of 30 days.

2. The notice of completion must be recorded in the office of the county recorder of the county where the property is situated and must set forth:

(a) The date when the work of improvement was completed, or the date on which cessation from labor occurred first and the period of its duration.

(b) The owner’s name or owners’ names, as the case may be, the address of the owner or addresses of the owners, as the case may be, and the nature of the title, if any, of the person signing the notice.

(c) A description of the property sufficient for identification.

(d) The name of the contractor, if any.

3. The notice must be verified by the owner or by some other person on his behalf. The notice need not be acknowledged to be recorded.

4. Upon recording the notice pursuant to this section, the owner shall, within 10 days after the notice is recorded, deliver a copy of the notice by certified mail, to:

(a) Any general contractor with whom the owner contracted for the work of improvement.

(b) Any person who, before the notice was recorded pursuant to this section, submitted a request to the owner to receive the notice.

108.229 Lien Not Invalidated by Mistakes in Claims; Amendments; Substitution of Defendants; Sufficiency of Notice of Lien

1. Upon the trial of any action or suit to foreclose such lien no variance between the lien and the proof shall defeat the lien or be deemed material unless the same results from fraud or is made intentionally, or has misled the adverse party to his prejudice, but in all cases of immaterial variance the claim of lien may be amended, by amendment duly recorded, to conform to the proof.

2. No error or mistake in the name of the owner or reputed owner contained in any claim of lien shall be held to defeat the lien, unless a correction of the lien in this particular would prejudice the rights of an innocent bona fide purchaser or encumbrancer for value.

3. Upon the trial, however, if it shall appear that an error or mistake has been made in the name of the owner or reputed owner, or that the wrong person has been named as owner or reputed owner in any such claim of lien, the court shall order an amended claim of lien to be recorded with the recorder where the original claim was recorded, and shall issue to the person who is so made to appear to be the original or reputed owner a notice directing such person or persons to be and appear before the court within the same time as is provided by Nevada Rules of Civil Procedure for the appearance in other actions after the service of summons, which notice shall be served in all respects as a summons is required to be served, and to show cause why:

(a) He should not be substituted, in the claim of lien and in the suit, in lieu of the person so made defendant and alleged to be owner or reputed owner by mistake.

(b) He should not be bound by the judgment or decree of the court. Such proceedings shall be had therein as though the party so cited to appear had been an original party defendant in the action or suit, and originally named in the claim of lien as owner or reputed owner, and the rights of all parties shall thereupon be fully adjudicated.

4. A notice of lien which contains therein the description of the real property supplied by and set forth in the notice of completion recorded pursuant to NRS 108.228 shall, for all purposes, be sufficient as a description of the actual real property upon which the work or labor was performed or materials were supplied; and amendment of the lien claim or amendment of the pleading filed by the lien claimant in a foreclosure action, or both, may be made to state the correct description, and such corrected description shall relate back to the time of recording such notice of lien claim, unless a correction of the lien in this particular would prejudice the rights of an innocent bona fide purchaser or encumbrancer for value.

108.231 Claim Against Two or More Pieces of Property: Designation of Amount Due on Each

1. In every case in which one claim is recorded against two or more buildings, mining claims or other improvements owned by the same person, the person recording such claim must at the same time designate the amount due to him on each of such buildings, mining claims or other improvements; otherwise the lien of such claim is postponed to other liens.

2. The lien of such claimant does not extend beyond the amount designated, as against other creditors having liens by judgment or otherwise, upon either of such buildings or other improvements, or upon the land upon which the same are constructed.

108.232 Claim to be Recorded; Fees of Recorder

The recorder must record the claim in a book kept by him for that purpose, which record must be indexed as deeds and other conveyances are required by law to be indexed, and for which he may receive the same fees as are allowed by law for recording deeds and other instruments.

108.233 Duration of Lien

1. No lien provided for in NRS 108.221 to 108.246, inclusive, binds any building, mining claim, improvement or structure for a longer period than 6 months after such lien has been recorded, unless:

(a) Proceedings are commenced in a proper court within that time to enforce the same; or

(b) The time to commence the action is extended by a written instrument signed by the lienor and by a person or persons in interest in the property subject to the lien, in which event, and as to only that person or those persons in interest signing the agreement, the time is extended; but no extension shall be valid unless in writing and recorded in the county recorder’s office in which the lien is recorded and unless the extension agreement is recorded within such 6-month period; and such extension agreement, to be recorded, must be acknowledged as required by law for the acknowledgment of deeds. An action may be commenced within such extended time only as to the persons signing the extension agreement and only as their interests are affected, and upon the lapse of the time specified in the extension agreement, an action may not thereafter be commenced, nor may a second extension be given.

2. For all purposes, a mechanic’s lien of record shall be deemed to have expired as a lien after the lapse of the 6-month period provided in subsection 1, and such recording shall not provide actual or constructive notice after the lapse of such 6-month period and as a lien on the real property referred to in the recorded notice of lien, unless, prior to the lapse of such 6-month period the extension agreement has been recorded, in which event, the lien shall continue as a lien on the interests of those persons signing the extension for the period specified in the extension and for no longer period.

3. If there are other claims outstanding against the property, no extension shall be given upon the lien which will tend to delay or postpone the collection of other claims or encumbrances against the property; and no extension shall be given for a period in excess of 1 year beyond the recording of the lien.

108.234 Notice of Nonresponsibility: Filing by Owner or Claimant of Interest in Land

Every building or other improvement mentioned in NRS 108.222, constructed upon any lands with the knowledge of the owner or the person having or claiming any interest therein, shall be held to have been constructed at the instance of such owner or person having or claiming any interest therein, and the interest owned or claimed shall be subject to any lien recorded in accordance with the provisions of NRS 108.221 to 108.246, inclusive, unless such owner or person having or claiming an interest therein shall, within 3 days after he has obtained knowledge of the construction, alteration or repair, or the intended construction, alteration or repair, give notice that he will not be responsible for such improvement by filing a notice in writing to that effect with the county recorder of the county where the land or building is situated; and, in the instance of:

1. A lessor, the notice of lien nonresponsibility shall be deemed timely filed if the same has been filed within 3 days immediately following the execution of the lease by all parties as to that construction, alteration or repair, or intended construction, alteration or repair, known to the lessor at the time of the execution of the lease by all parties.

2. An optionor, the notice of lien nonresponsibility shall be deemed timely filed if the same has been filed within 3 days immediately following the execution of the agreement permitting entry upon the real property by all parties as to that construction, alteration, repair, or intended construction, alteration, repair or other work known to the optionor at the time of the execution of the agreement by all parties.

108.235 Amount Recoverable by Contractor; Defense of Action on Lien; Withholding Amount of Lien; Deduction or Recovery of Excess of Judgment and Costs

1. The contractor shall be entitled to recover, upon a lien recorded by him, only such amount as may be due to him according to the terms of his contract, after deducting all claims of other parties for work done and material furnished, as provided in NRS 108.221 to 108.246, inclusive.

2. In all cases where a lien is recorded under NRS 108.221 to 108.246, inclusive, for work done or materials furnished to any contractor, he shall defend any action brought thereupon at his own expense. During the pendency of the action, the owner may withhold from the contractor the amount of money for which such lien is filed. In case of judgment against the owner or his property upon the lien, the owner shall be entitled to deduct, from any amount due or to become due by him to the contractor, the amount of the judgment and costs. If the amount of the judgment and costs exceeds the amount due by him to the contractor, or if the owner has settled with the contractor, the owner shall be entitled to recover back from the contractor any amount so paid by the owner in excess of the contract price, and for which the contractor was originally the party liable.

108.236 Court Must Declare Rank of Liens in Judgment; Application of Proceeds

1. In every case in which different liens are asserted against any property, the court, in the judgment, must declare the rank of each lien, or class of liens, which must be in the following order:

First: All labor whether performed at the instance or direction of the owner, subcontractor or the original contractor.

Second: Material suppliers.

Third: The subcontractors, architects, land surveyors, geologists and engineers, if such architects, land surveyors, geologists and engineers have performed their services, in whole or in part, under contract with the general contractor.

Fourth: The original contractors, architects, land surveyors, geologists and engineers, if such architects, land surveyors, geologists and engineers have not performed their services, in whole or in part, under contract with the general contractor, and all persons other than original contractors, subcontractors, architects, land surveyors, geologists and engineers.

2. The proceeds of the sale of the property must be applied to each lien, or class of liens, in the order of its rank.

108.237 Joinder of Parties Claiming Liens; Consolidation of Actions; Interest and Attorney’s Fees

1. Any number of persons claiming liens may join in the same action. When separate actions are commenced the court may consolidate them.

2. The court may also allow interest at a rate equal to the prime rate at the largest bank in Nevada, as ascertained by the commissioner of financial institutions, on January 1 or July 1, as the case may be, immediately preceding the date of judgment, plus 2 percent, on the amount of the lien found payable. The interest is payable from the date that the payment is found to have been due, and the court may allow, as part of the costs, the money paid for recording the lien. The rate of interest must be adjusted accordingly on each January 1 and July 1 thereafter until the amount of the lien is paid.

3. The court shall also allow to the prevailing party reasonable attorney’s fees for the preparation of the lien and for representation of the lien claimant in the action.

108.238 Right to Maintain Personal Action for Debt Not Impaired

Nothing contained in NRS 108.221 to 108.246, inclusive, shall be construed to impair or affect the right of any person to whom any debt may be due for work done or material furnished to maintain a personal action to recover such debt against the person liable therefore.

108.239 Actions on Liens: Complaint; Required Notices; Hearing and Judgment; Sale of Property

1. Liens may be enforced by an action in any court of competent jurisdiction, on setting out in the complaint the particulars of the demand, with a description of the premises to be charged with the lien.

2. At the time of filing the complaint and issuing the summons, the plaintiff shall:

(a) File a notice of pendency of the action in the manner provided in NRS 14.010; and

(b) Cause a notice to be published at least once a week for 3 successive weeks, in one newspaper published in the county, and if there is no newspaper published in the county, then in such mode as the court may determine, notifying all persons holding or claiming liens pursuant to the provisions of NRS 108.221 to 108.246, inclusive, on the premises to file with the clerk and serve on the plaintiff and also on the defendant, if the defendant is within the state or is represented by counsel, written statements of the facts constituting their liens, together with the dates and amounts thereof. The statements must be filed within 10 days after the last publication of the notice. The plaintiff and other parties adversely interested must be allowed 5 days to answer the statements.

3. If it appears from the records of the county recorder that there are other lien claims recorded against the same premises at the time of the commencement of the action, the plaintiff shall, in addition to and after the initial publication of the notice as provided in paragraph (b) of subsection 2, mail to those other lien claimants, by registered or certified mail, or deliver in person a copy of the notice as published.

4. At the time of any change in the venue of the action, the plaintiff shall file a notice of pendency of the action, in the manner provided in NRS 14.010, and include in the notice the court and county to which the action is changed.

5. The court shall enter judgment according to the right of the parties, and shall, by decree, proceed to hear and determine the claims in a summary way, or may, if it be the district court, refer the claims to a master to ascertain and report upon the liens and the amount justly due thereon. All liens not so exhibited shall be deemed to be waived in favor of those which are so exhibited.

6. On ascertaining the whole amount of the liens with which the premises are justly chargeable, as provided in NRS 108.221 to 108.246, inclusive, the court shall cause the premises to be sold in satisfaction of the liens and costs, including costs of suit, and any party in whose favor judgment may be rendered may cause the premises to be sold within the time and in the manner provided for sales on execution, issued out of any district court, for the sale of real property.

7. If the proceeds of sale, after the payment of costs, are not sufficient to satisfy the whole amount of the liens included in the decree of sale, the proceeds must be apportioned according to the right of the several parties. If the proceeds of the sale amount to more than the sum of the liens and the cost of sale, the remainder must be paid over to the owner of the property.

8. Each party whose claim is not satisfied in the manner provided in this section is entitled to personal judgment for the residue against the party legally liable for it if that person has been personally summoned or has appeared in the action.

108.2413 Release of Lien on Real Property by Posting Surety Bond: Manner

A mechanic’s lien of record upon real property may be released upon the posting of a surety bond in the manner provided in NRS 108.2415 to 108.2425, inclusive.

108.2415 Release of Lien on Real Property by Posting Surety Bond: Form of Bond

The debtor of the lien claimant or a party in interest in the premises subject to the lien must obtain a surety bond executed by the debtor of the lien claimant or a party in interest in the premises subject to the lien, as principal, and executed by a corporation authorized to transact surety business in this state, as surety, in substantially the following form:

(Title of court and cause, if action has been commenced)

WHEREAS, _______________ (name of owner, contractor, or other person disputing lien) desires to give a bond for releasing the following described real property from that certain claim of mechanic’s lien in the sum of $ _________ recorded _____________, 20__, in the office of the recorder in _________________ (name of county where the real property is situated):

(legal description)

NOW, THEREFORE, the undersigned principal and surety do hereby obligate themselves to the claimant named in the mechanic’s lien, _____________, (name of claimant) under the conditions prescribed by NRS 108.2413 to 108.2425, inclusive, in the sum of $_________ (1 1/2 x claim), from which sum they will pay the claimant such amount as a court of competent jurisdiction may adjudge to have been secured by his lien, with interest, costs and attorney’s fees.

IN TESTIMONY WHEREOF, the principal and surety have executed this bond at _____________, Nevada, on the ________ day of _________, 20__

________________________

(Signature of Principal)

(SURETY CORPORATION)

BY______________________(Its Attorney in Fact)

State of Nevada }

}ss.

County of }

On __________, 20__, before me, the undersigned, a notary public of this county and state, personally appeared _______________ who acknowledged that he executed the foregoing instrument as principal for the purposes therein mentioned and also personally appeared __________________ known (or satisfactorily proved) to me to be the attorney in fact of the corporation that executed the foregoing instrument, known to me to be the person who executed that instrument on behalf of the corporation therein named, and he acknowledged to me that that corporation executed the foregoing instrument.

(Notary Public in and for the County and State)

108.2417 Release of Lien on Real Property by Posting Surety Bond: Petition for Release; Service of Copy of Petition

1. A petition for the release of a mechanic’s lien must be filed in the district court and set forth:

(a) The title of the cause, thus: “In the matter of the petition of __________________ (name of petitioner) for release of mechanic’s lien of __________________ (name of mechanic’s lien claimant) upon posting surety bond.”

(b) An allegation of the purchase of and payment of the premium for the bond, and the dates of purchase and payment.

(c) An allegation incorporating any reference a true copy of the bond, which copy must be attached to the petition.

(d) The name or names of the owner or reputed owners of the land subject to the lien.

(e) A description of the real property subject to the lien, and the book and document number of the lien as given by the recorder’s office.

(f) A prayer for an order releasing the lien.

2. The petitioner shall obtain an order from a judge of the district court setting forth the time and date of the hearing on the petition, which time and date must be at least 5 days after the date of the order and not more than 10 days after the date of the order.

3. A copy of the petition and a copy of the order must be served on the lien claimant at least 2 days before the date set for the hearing, and served in the manner provided by law for service of summons.

108.2419 Release of Lien on Real Property by Posting Surety Bond: Hearing on Petition; Contents and Effect of Order Releasing Lien

1. Upon the hearing, the court shall enter its order releasing the mechanic’s lien upon the petitioner’s filing in open court the original bond, and introducing in evidence a receipt for payment of the premium.

2. The entry of the order by the court must refer to the property which is the subject of the lien and the lien itself, by document number and book number, and must recite that the lien is released of record for all purposes to the same extent as if released of record by the lienor.

3. Upon entry of the order, the lien is released of record in its entirety and for all purposes and the real property, the subject of the lien, released from the encumbrances of the lien.

4. There is no appeal from the entry of the order and upon entry the order is final for all purposes.

108.2421 Release of Lien on Real Property by Posting Surety Bond: Action Against Debtor and Surety; Preferential Settings

1. The lien claimant is entitled to bring an action against the lien claimant’s debtor and to join therein the surety on the bond. A judgment for the claimant on the bond may not be made against the property. The rights of the lien claimant include and the court may award to him in that action:

(a) The amount found due to the lien claimant by the court;

(b) The cost of preparing and filing the lien claim, including attorney’s fees, if any;

(c) The costs of the proceedings;

(d) Attorney’s fees for representation of the lien claimant in the proceedings; and

(e) Interest at a rate established pursuant to NRS 99.040 from the date found by the court that the sum was due.

2. Proceedings pursuant to subsection 1 are entitled to priority of hearing second only to criminal hearings. The plaintiff in the action may serve upon the adverse party a “demand for 30-day setting,” in the proper form, and file the demand with the clerk of the court. Upon filing, the clerk of the court shall, before the Friday after the demand is filed, vacate a case or cases in a department of the court and set the lien claimant’s case for hearing, on a day or days certain, to be heard within 30 days after the filing of the “demand for 30-day setting.” Only one such preferential setting need be given by the court, unless the hearing date is vacated without stipulation of counsel for the plaintiff in writing. If the hearing date is vacated without that stipulation, upon service and filing, a new preferential setting must be given.

108.2423 Release of Lien on Real Property by Posting Surety Bond: Motion to Enforce Liability of Surety

1. By entering into a bond given pursuant to NRS 108.2415, the surety submits himself to the jurisdiction of the court in which the bond is filed in the proceeding or release of the lien, and the surety irrevocably appoints the clerk of that court as its agent upon whom any papers affecting its liability on the bond may be served. Its liability may be enforced on motion without necessity of an independent action. The motion and such notice of motion as the court prescribes may be served on the clerk of the court, who shall forthwith mail copies to the surety if his address is known.

2. The motion described in subsection 1 must not be instituted until the lapse of 30 days following the giving of notice of entry of judgment in the action against the lien claimant’s debtor, if no notice of appeal from the judgment is filed, nor may the motion be instituted until the lapse of 30 days following the filing of the remittitur from the supreme court, if an appeal has been taken from the judgment.

108.2425 Release of Lien on Real Property by Posting Surety Bond: Exception to Sufficiency of Surety

1. The lien claimant may, within 2 days after the service of a copy of the petition and a copy of the bond attached thereto, file with the clerk of the court in the action a notice excepting to the sufficiency of the surety on the bond, and shall, at the same time and together with that notice, file an affidavit setting forth the grounds and basis of the exceptions to the surety, and shall serve a copy of the notice and a copy of the affidavit upon the attorney or the petitioner on the same date as the date of filing. A hearing must be had upon the justification of the surety at the same time as that set for the hearing on the petition for the order to release the lien.

2. If the lien claimant fails to file and serve the notice and affidavit within 2 days after the service of the petition for release of the lien, he shall be deemed to have waived all objection to the justification and sufficiency of the surety.

108.243 Assignment of Liens

1. Any lien may be assigned in the same manner as any other chose in action after it has been perfected by recording.

2. No assignment of a lien prior to recording shall be effective until written notice of the assignment has been given to the owner by the assignee. Any such notice shall be sufficient if delivered in person or mailed by certified mail to the person named as owner in the building permit. After such notice the assignee may perfect the lien in his own name.

3. Two or more lien claimants of the same class may assign their lien claims by written assignment, signed by each assignor, to any other person or lien claimant of the same class, and the assignee may commence and prosecute the action upon all of the lien claims in his own name.

4. In the event that a claim for which a lien may be filed is assigned before it is perfected, such assignment shall not discharge or defeat the right to perfect such lien, if such claim is reassigned to the lien claimant, and thereafter such lien claim is timely perfected.

108.2433 Discharge of Lien: Marginal Entries; Discharge or Release Must Be Recorded if Lien Recorded by Photographic Process; Presentation of Certificate Executed by Lienor or His Personal Representative or Assignee

1. Except as otherwise provided in subsection 2, a lien of record upon real property provided for in NRS 108.221 to 108.246, inclusive, may be discharged by an entry on the margin of the record thereof, signed by the lienor or his personal representative or assignee in the presence of the recorder or his deputy, acknowledging the satisfaction of or value received for the lien and the debt secured thereby. The recorder or his deputy shall subscribe the entry as witness. The entry has the same effect as a discharge or release of the lien acknowledged and recorded as provided by law. The recorder shall properly index each marginal discharge.

2. If the lien has been recorded by a microfilm or other photographic process, a marginal release may not be used and an acknowledged discharge or release of the lien must be recorded.

3. If the recorder or his deputy is presented with a certificate executed by the lienor or his personal representative or assignee, specifying that the lien has been paid or otherwise satisfied or discharged, the recorder or his deputy shall discharge the lien upon the record.

108.2437 Discharge of Lien: Recording by Lienor; Form; Liability for Failure to Record

1. As soon as practicable, but not later than 10 days after a lien of record upon real property pursuant to NRS 108.221 to 108.246, inclusive, is satisfied or discharged, the lienor shall cause to be recorded a discharge or release of the lien in substantially the following form:

DISCHARGE OR RELEASE OF LIEN

NOTICE IS HEREBY GIVEN THAT:

The undersigned did, on the ________ day of _____, 19__, record in Book __________, as Document No. _______, in the office of the county recorder of ____________ County, Nevada, its Notice of Lien, or has otherwise given notice of his intention to hold and claim a lien upon the following described property, owned or purportedly owned by __________, situated in the County of ___________, State of Nevada, to wit:

(Legal Description or Address of the Property)

NOW, THEREFORE, for valuable consideration the undersigned does release, satisfy and discharge the claim or lien on the property described above by reason of such Notice of Lien, or by reason of the work and labor on, or materials furnished for, that property.

(Signature of Lienor)

2. If the lienor fails to comply with the provisions of subsection 1, he is liable in a civil action to the owner of the real property, his heirs or assigns for any actual damages caused by his failure to comply with those provisions or $100, whichever is greater, and for a reasonable attorney’s fee and the costs of bringing the action.

108.244 Limitation on Filing Complaint for Foreclosure of Mechanic’s Lien

A lien claimant or assignee of a lien claimant or claimants may not file a complaint for foreclosure of his mechanic’s lien or the assigned mechanic’s lien or mechanics’ liens until 30 days have expired immediately following the filing of his mechanic’s lien or following the filing of the assigned mechanic’s lien or the last of the assigned mechanics’ liens. This provision shall not apply to nor prohibit the filing of any statement of lien or statements of lien in an already filed action for foreclosure of mechanic’s lien and to comply with the provisions of NRS 108.239.

108.245 Notice to Owner of Material Supplied or Work or Services Performed: Contents; Effect

1. Except as otherwise provided in subsection 5, every person, firm, partnership, corporation or other legal entity, other than one who performs only labor, who claims the benefit of NRS 108.221 to 108.246, inclusive, shall, within 31 days after the first delivery of material or performance of work or services under his contract, deliver in person or by certified mail to the owner or reputed owner of the property or to the person whose name appears as owner on the building permit, if any, for the improvement a notice in substantially the following form:

Notice to Owner of Materials Supplied or Work or Services Performed

To: ___________________(Owner’s name and address)

The undersigned notifies you that he has supplied materials or performed work or services as follows:

(General description of materials, work or services and anticipated total value) for improvement of real property identified as (property description or street address) under contract with (general contractor or subcontractor). This is not a notice that the undersigned has not been or does not expect to be paid, but a notice required by law that the undersigned may, at a future date, claim a lien as provided by law against the property if the undersigned is not paid.

(Claimant)

A subcontractor or materialman under a subcontract who gives such a notice must also deliver in person or send by certified mail a copy of the notice to the general contractor for information only. Persistent failure by a subcontractor to deliver such notices to the general contractor is a ground for disciplinary proceedings against the subcontractor under chapter 624 of NRS.

2. Such a notice does not constitute a lien or give actual or constructive notice of a lien for any purpose.

3. No lien for materials furnished or for work or services performed, except labor, may be perfected or enforced pursuant to NRS 108.221 to 108.246, inclusive, unless the notice has been given.

4. The notice need not be verified, sworn to or acknowledged.

5. A general contractor or other person who contracts directly with an owner or sells materials directly to an owner is not required to give notice pursuant to this section.

6. As used in this section, “owner” does not include any person, firm or corporation whose only interest in the real property is under a mortgage, deed of trust or other security arrangement.

108.246 Contractor to Advise Owner of Content of NRS 108.245; Subcontractors to Furnish Contractor Copy of Notice of Lien; Penalties

1. Each general contractor shall, prior to execution of a construction contract, inform the record owner, as defined in NRS 108.227, with whom he intends to contract of the provisions of NRS 108.245 in substantially the following form:

To:(Owner’s name and address)

Section 108.245 of Nevada Revised Statutes, a part of the mechanics’ lien law of the State of Nevada, requires, for your information and protection from hidden liens, that each person or other legal entity which supplies materials to or performs work or services on a construction project, other than one who performs only labor, shall deliver to the owner a notice of the materials supplied or the work or services
performed. You may receive such notices in connection with the construction project which you propose to undertake.

2. Each general contractor shall deliver a copy of the information required by subsection 1 to each subcontractor who participates in the construction project.

3. Persistent failure of a general contractor so to inform owners and subcontractors with whom he contracts is a ground for disciplinary proceedings under chapter 624 of NRS.

4. Each subcontractor who participates in the construction project shall deliver a copy of each notice required by NRS 108.226 to the general contractor. Persistent failure of the subcontractor to deliver such notice to the general contractor is a ground for disciplinary proceedings under chapter 624 of NRS.