Chapter 17 of 185% of exam

Nevada Lien Law

Nevada's mechanic's lien law rewards early notice from those not in direct contract with the owner. This chapter covers the Notice of Right to Lien and its 31-day look-back.

The Notice of Right to Lien

Nevada's mechanic's lien law is in NRS Chapter 108. A claimant who does not contract directly with the owner - a subcontractor or supplier - must deliver a Notice of Right to Lien to the owner, in person or by certified mail, to preserve lien rights (NRS 108.245). The notice may be given at any time after the claimant first furnishes labor or materials. Laborers, prime contractors, and others who contract directly with the owner do not have to give it.

Why the early notice matters

A late notice is still valid, but it costs money. The lien covers only work and materials furnished in the 31 days before the notice is given and everything furnished after it (NRS 108.245(6)). Anything furnished earlier than that falls outside the lien, so the safe habit is to send the notice as soon as work starts. The notice puts the owner on notice that a lower-tier party may claim a lien if it is not paid, which is exactly the protection the statute is designed to give.

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State-specific details

State exam facts

Prelicensing education
Four years of relevant experience within the last fifteen years
Passing score
75%
Scored questions
60
Time limit
120 minutes
Does Nevada require a state contractor license?

Yes. The Nevada State Contractors Board (NSCB) licenses contractors under NRS/NAC Chapter 624, using Class A (Engineering), Class B (Building), and Class C (specialty). The Board sets a monetary limit on each license, and the financial statement an applicant files depends on the limit sought (NAC 624.593): for $1,000,000 or more it must be reviewed or audited by a CPA.

What is on the Nevada Contractor Management Survey (CMS) exam?

The CMS Business & Law exam has 60 scored questions plus 3 unscored, runs 120 minutes plus 6 for the unscored questions, and requires 45 correct (75%) to pass. It is open book, and the only reference allowed is the Construction Business and Law Manual for Nevada. Applicants must show four years of relevant experience within the last fifteen years. A separate trade exam for the license classification is also required.

How does Nevada protect residential customers?

Nevada maintains a Residential Recovery Fund, and under NRS 108.245 a Notice of Right to Lien may be given at any time after first furnishing, but the lien then reaches only the 31 days before the notice and what follows. Nevada has no personal or corporate income tax but does impose the Modified Business Tax.

Sources: https://www.nvcontractorsboard.com, https://test-takers.psiexams.com/api/content/bulletin/296

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