Under NRS 108, what happens to lien priority when multiple subcontractors file liens on the same property?
Correct Answer
D) All liens have equal priority
Nevada lien law provides that all mechanics' liens arising from the same improvement have equal priority, regardless of filing order or amount.
Why This Is the Correct Answer
Nevada's NRS 108 establishes that all mechanic's liens arising from the same improvement share equal priority (pari passu), regardless of when they were filed or how large the claim is. This protects subcontractors from racing to record first.
Why the Other Options Are Wrong
Option A: General contractor's lien has priority
The general contractor's lien does NOT receive automatic priority over subcontractor liens in Nevada. All participants in the same improvement stand on equal legal footing under NRS 108.
Option B: First to file has priority
Nevada explicitly rejects the 'first-to-file' priority rule for mechanic's liens. Filing order is irrelevant — all liens on the same improvement are treated equally.
Option C: Largest amount has priority
The dollar amount of a lien has no bearing on its priority in Nevada. A $500 lien and a $500,000 lien on the same project have identical priority status.
Memory Technique
Picture all subcontractors standing in a circle holding hands — everyone is at the same level, no one is higher. In Nevada, the lien circle is flat: equal priority for all.
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