Nevada Administrative Code Chapter 108 - Statutory Liens
Nevada Administrative Code (NAC)
Chapter 108 — Statutory Liens
Overview:
Chapter 108 governs statutory liens in Nevada, which are legal claims against property to secure payment of a debt or obligation. Statutory liens often arise in contexts such as construction, mechanics, labor, taxes, and municipal charges. This chapter sets forth requirements for creating, perfecting, enforcing, and releasing liens to ensure creditors and property owners understand their rights and obligations.
1. Definitions and General Provisions (NAC 108.010 – NAC 108.050)
Key points:
Defines key terms such as:
“Lien”: a legal claim or encumbrance on property to secure payment of a debt.
“Property owner”: the legal owner of the property subject to the lien.
“Lienholder”: the person or entity holding the lien.
Specifies which types of property are subject to statutory liens, including real estate, personal property, and improvements.
Establishes that statutory liens take priority according to Nevada law and specific filing requirements.
Why it matters:
Clarifies the scope and applicability of lien law, reducing disputes over enforcement and priority.
2. Creation of a Lien (NAC 108.060 – NAC 108.100)
Key points:
Statutory liens arise automatically or through specific statutory provisions, depending on the type of lien.
Examples of lien creation:
Mechanics’ liens for construction labor or materials.
Landlord liens for unpaid rent on tenant property.
Municipal liens for unpaid utility or tax charges.
Some liens require notice to the property owner before they are perfected.
Why it matters:
Determines when and how a lien attaches, protecting the rights of both lienholders and property owners.
3. Filing and Perfection of a Lien (NAC 108.110 – NAC 108.160)
Key points:
Certain statutory liens must be filed or recorded in the appropriate public office (e.g., county recorder).
Required information often includes:
Name and contact information of the lienholder.
Legal description of the property.
Amount claimed and basis of lien.
Filing deadlines are strict, often based on the date of work performed or debt incurred.
Proper filing perfects the lien, establishing legal priority over subsequent claims.
Why it matters:
Ensures that liens are legally enforceable and properly documented, preventing disputes over priority or validity.
4. Enforcement and Foreclosure (NAC 108.170 – NAC 108.220)
Key points:
Lienholders may enforce liens through legal action, including:
Foreclosure on real property liens.
Seizure or sale of personal property.
Specific notice and procedural requirements must be met before enforcement.
Courts may require lienholders to prove the validity and amount of the lien.
Enforcement is subject to statutory limitations, including time limits for filing lawsuits to foreclose.
Why it matters:
Provides a mechanism to recover debts while ensuring property owners have legal protections.
5. Priority of Liens (NAC 108.230 – NAC 108.270)
Key points:
Priority determines the order in which claims are satisfied when multiple liens exist.
General rules include:
First in time, first in right, unless a statute specifies otherwise.
Some liens, like tax liens or construction liens, may have statutory priority over others.
Proper filing and perfection are critical for establishing priority against competing claimants.
Why it matters:
Clarifies who gets paid first and reduces disputes in cases of insufficient funds or property value.
6. Release and Satisfaction of Liens (NAC 108.280 – NAC 108.310)
Key points:
Liens are released when the underlying debt is paid or satisfied.
Lienholders must file a release or satisfaction document with the appropriate public office.
Failure to release a lien may result in penalties or legal liability for wrongful encumbrance.
Property owners may seek court orders to remove liens if improperly filed.
Why it matters:
Ensures clear title to property and protects property owners from lingering encumbrances.
7. Special Rules for Certain Liens (NAC 108.320 – NAC 108.360)
Key points:
Certain statutory liens have unique filing or enforcement rules, such as:
Mechanics’ liens require preliminary notices to property owners and specific deadlines.
Municipal liens may involve lien certificates issued by a city or county.
Storage or warehouse liens have distinct notice requirements to debtors.
Compliance with these rules is essential to avoid invalidation of the lien.
Why it matters:
Protects the rights of specialized lienholders while providing clarity for property owners in different contexts.
8. Penalties and Noncompliance (NAC 108.370 – NAC 108.400)
Key points:
Failure to comply with filing, notice, or procedural requirements may result in:
Lien invalidation.
Liability for damages to the property owner.
Administrative or legal penalties.
Lienholders are encouraged to follow statutory procedures precisely to preserve rights.
Why it matters:
Encourages compliance and proper administration, balancing the interests of creditors and property owners.
✅ Summary of Key Rule Areas
| Rule Section | What It Regulates | Core Purpose |
|---|---|---|
| NAC 108.010–050 | Definitions and scope | Clarifies terms, property types, and lien applicability |
| NAC 108.060–100 | Creation of liens | Establishes how statutory liens arise |
| NAC 108.110–160 | Filing and perfection | Ensures legal enforceability and priority |
| NAC 108.170–220 | Enforcement and foreclosure | Provides mechanisms to recover debts |
| NAC 108.230–270 | Priority of liens | Determines order of payment among lienholders |
| NAC 108.280–310 | Release and satisfaction | Ensures clear title after debt repayment |
| NAC 108.320–360 | Special rules | Addresses mechanics’, municipal, and storage liens |
| NAC 108.370–400 | Penalties and noncompliance | Enforces procedural compliance and accountability |
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