Under NRS 108, a material supplier delivers $15,000 worth of lumber to a residential project on March 1st and continues deliveries through March 15th. When must the preliminary notice be served to preserve lien rights?
Correct Answer
D) By March 21st
Under NRS 108, preliminary notice must be served within 20 days of first furnishing materials, which would be March 21st (20 days from March 1st).
Why This Is the Correct Answer
Under NRS 108.245, a material supplier must serve a preliminary notice within 20 days of FIRST furnishing materials to preserve lien rights for all subsequent deliveries. The first delivery was March 1st, so 20 days from March 1st = March 21st. Serving notice by March 21st protects the supplier's lien rights for all deliveries made from March 1st onward.
Why the Other Options Are Wrong
Option A: By March 31st
March 31st is 30 days from March 1st, which exceeds the 20-day window. Filing by this date would be too late to protect lien rights for the full period of deliveries.
Option B: By April 15th
April 15th is well past the 20-day deadline. By this date, lien rights for all deliveries would have been forfeited due to the missed notice deadline.
Option C: By April 4th
April 4th is 20 days from March 15th (the last delivery date). This would be correct only if the 20-day period ran from the LAST delivery, but NRS 108 starts the clock from the FIRST delivery, not the last.
Memory Technique
In Nevada, the 20-day clock starts ticking the moment the FIRST delivery arrives on site. Think of it as the 'first truck rule' — when the first truck delivers, your 20-day countdown begins immediately.
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