A Nevada subcontractor provides $28,000 worth of electrical work but is not paid by the general contractor. Under NRS 108, what must the subcontractor do to preserve lien rights if no preliminary notice was served?
Correct Answer
B) Cannot establish lien rights without preliminary notice
Under NRS 108, subcontractors must serve preliminary notice within 20 days of first furnishing labor or materials to preserve lien rights, except in limited circumstances.
Why This Is the Correct Answer
Under NRS 108, subcontractors (who are not in direct contract with the owner) must serve a preliminary notice to preserve their mechanics lien rights. If that notice was never served, the subcontractor has no valid lien claim for the work already performed. The subcontractor cannot retroactively cure the failure to serve preliminary notice — lien rights are lost for periods not covered by a timely notice.
Why the Other Options Are Wrong
Option A: File a notice of non-payment with the county recorder
A 'notice of non-payment' filed with the county recorder is not a recognized remedy under NRS 108 for a subcontractor who failed to serve preliminary notice. This option conflates different procedural steps and does not restore lost lien rights.
Option C: Serve a preliminary notice within 15 days of first work
Serving a preliminary notice within 15 days of first work is a specific deadline, but the scenario states no preliminary notice was served at all. More importantly, if the work is already complete, the 20-day window for serving preliminary notice has likely already passed, making late service ineffective for the work already performed.
Option D: File the lien immediately
Filing the lien immediately cannot substitute for the preliminary notice requirement. Under NRS 108, the right to record a lien depends on having properly served preliminary notice earlier. Filing a lien without the required preliminary notice leaves the lien legally defective and subject to dismissal.
Memory Technique
Think of preliminary notice as the 'lien entry ticket.' Without the ticket, you cannot get into the lien game no matter how much work you did. No ticket = no lien, period.
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