Mechanics Lien Law Allows Equipment Rental Companies to File Liens
Under Nevada’s new mechanic’s lien law, a company which rents equipment that is used to improve real property now has the right to file a mechanic’s lien.
The revised NRS 108.22124 defines equipment to include “tools, machinery and vehicles, furnished or rented, which are used or to be used in the construction, alteration or repair of a work of improvement at the request of the owner or an agent of the owner.
This statutory change opens up the ability for construction equipment rental companies - even those located outside Nevada - to secure a lien on real property within this state.
With the power to file a mechanic’s lien, Nevada has become and attractive place for equipment renters to conduct business.
Property owners who wish to avoid liens from equipment rental suppliers will need to set up all contracts to allow for joint checks to be issued to contractors, subcontractors and equipment renters. Joint checks are the only clear way under Nevada mechanic’s lien law to keep liens off property from subcontractors, suppliers, and other who the owner does not have a contract with. The old method of simply obtaining lien waivers is no longer effective as lien waivers without actual payment are void under the new law.
For more information regarding Nevada’s new lien law, please contact Gene Backus.