A Nevada contractor completes $85,000 worth of work on a residential project. The property owner fails to pay the final invoice of $12,500. Under NRS 108, what is the maximum amount the contractor can claim in a mechanic's lien?
Correct Answer
A) $12,500
Under Nevada lien law (NRS 108), a contractor can only lien for the amount actually owed and unpaid, which is $12,500 in this case.
Why This Is the Correct Answer
Under NRS 108, a mechanic's lien may only be filed for the amount that is actually owed and remains unpaid. The contractor completed $85,000 of work but has only been denied payment of $12,500 (the final invoice). Therefore, the maximum lien claim is $12,500 — the unpaid balance — not the total project value.
Why the Other Options Are Wrong
Option B: $97,500
$97,500 is the sum of $85,000 + $12,500, which makes no mathematical or legal sense. A lien cannot exceed the amount owed, and adding total work value to the unpaid invoice is an incorrect approach.
Option C: $72,500
$72,500 is $85,000 minus $12,500 — the amount already paid. This represents the portion the owner did pay, which has no relevance to the lien amount. The lien covers what is unpaid, not what was paid.
Option D: $85,000
$85,000 is the total contract value, but the owner already paid $72,500 of it. Filing a lien for the full contract value when most of it has been paid would be an overstatement and invalid under NRS 108.
Memory Technique
Lien = what you LEAN on to collect what's OWED. You can only lean on what you haven't received yet. $12,500 unpaid → $12,500 lien. Simple as that.
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