Duration of a Mechanic’s Lien in Nevada
Nevada Revised Statutes (“NRS”) Chapter 108 primarily governs a lien claimant’s legal rights to file and enforce a mechanic’s lien claim in Nevada. There are many deadlines and timeframes that must be adhered to in order to protect a lien claimant’s legal rights. It is particularly important that a lien claimant in Nevada is aware of the duration of a lien, and the timeframe in which to bring an action to enforce a lien in a proper court. NRS 108.233(1) mandates the relevant duration of a lien as follows:
1. A lien provided for in NRS 108.221 to 108.246, inclusive, must not bind the property subject to the lien for a period longer than 6 months after the date on which the notice of lien was 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 lien claimant 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 is valid unless in writing and recorded in the county recorder’s office in which the notice of lien is recorded and unless the extension agreement is recorded within the 6-month period.
[See NRS 108.233(1) (emphasis added)]
The law requires that, if the parties agree and execute a written extension agreement, it must be recorded and acknowledged as required by the law for the acknowledgement of deeds. Although an action may be commenced within the extended time, it can only be commenced against the persons who signed the extension agreement and only as to their interests in the property affected. A lien claimant may not commence an action on the lien in a proper court if the time specified in the extension agreement lapses. Notably, an extension must not be given for a period in excess of one (1) year beyond the date on which the notice of lien is recorded. In addition, “if there are other notices of lien outstanding against the property, an extension must not be given upon a notice of lien which will tend to delay or postpone the collection of other liens evidenced by a notice of lien or encumbrances against the property.” [See NRS 108.233 (3)].
Consequently, if a lien claimant fails to file an action to foreclose on a lien in a proper court within the six month time frame mandated in NRS 108.233(1), and allows more than six months to elapse since the filing of the lien(s) on the real property or fails to request or secure an extension of time to file an action to foreclose in the proper court as set forth in NRS 108.233(1)(b), the notice of lien shall be deemed to have expired as a lien against the property.
The attorneys at Kring and Chung, LLP can ensure that you are complying with the Nevada lien law requirements and adhering to the statutory deadlines and timeframes. For more information on Nevada mechanic’s lien law, please call us or stop by to discuss.