Discharging a Lien in Nevada

So at this point you've filed your mechanic's lien against a client's property after the client never paid the invoice for a completed project. Now the client has finally paid off the lien or maybe you've come to some agreement with the client to accept a lesser amount. You're free to forget about the ordeal and move on to prepare for your next job, right?

Not quite; Nevada lien law requires you to perform one additional step of filing a notice of discharge to provide public notice that you are no longer claiming a lien against the title. It is essential to properly file and record this notice because you can face potential consequences by skipping this step. By this time, you've already complied with statutory lien law to the letter in order to obtain your lien, so don't be sloppy now.

The discharge of lien form gives notice to the owner, other lien claimants, and anyone else with a potential interest in the subject property that the lien has been paid in full or has otherwise terminated. If you obtained a mechanic's lien and the debtor or other person responsible for the lien pays the debt or you discharge the lien for any other reason, you must file a discharge of lien notice. As soon as possible, but not later than 10 days after a notice of lien upon the property (pursuant to NRS 108.221 to 108.246) is fully satisfied or discharged, the lien claimant must record a discharge or release of the notice of lien drafted in substantial compliance as required by Nevada lien law. Serve the discharge notice on the owner personally or by certified mail.

Failure to file this notice in time exposes you to potential liability in a civil action (pursuant to NRS 108.2437). Because a lien is a burden on the property (and the owner) and can discourage or prevent a sale, transfer, or refinancing, neglecting to discharge the lien can cause the owner damages, thus entitling her to a legal remedy. For instance, you may be liable for the costs of a lost sale or damages caused by a lender's refusal to extend credit due to the mechanic's lien on the collateral property. Even if the failure to discharge the lien did not cause any actual damages, Nevada lien law allows for a statutory penalty award of $100 to the owner. The owner or heirs are also entitled to reasonable attorney's fee and the costs of bringing the action. Again, it is essential to properly discharge any lien recorded against a property once the underlying debt has been satisfied or discharged for any other reason.

Each case is unique, so contact an attorney with specific questions or for complex situations.

How to Use This Form

Select your county or independent city from the list above
Download the county or independent city-specific form
Fill in the required information
Have the document notarized if required
Record with your county or independent city recorder's office

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Common Uses for Discharge of Lien

Document partial payment received on a construction project
Notify a general contractor of unpaid subcontractor invoices
Protect subcontractor payment rights on a building project
Provide required pre-lien notice before filing a claim

Compare other Nevada deed forms and documents

Quitclaim Deed Gift Deed Warranty Deed Special Warranty Deed Grant Deed Easement Deed Termination of Easement Correction Deed Mineral Deed Mineral Quitclaim Deed Transfer on Death Deed Transfer on Death Revocation Transfer on Death Affidavit Special Power of Attorney for Real Property Affidavit of Death of Joint Tenant Affidavit of Death of Spouse Holding Community Property Personal Representative Deed of Distribution Personal Representative Deed of Sale Disclaimer of Interest Certificate of Trust Deed of Trust Assignment of Deed of Trust Deed of Full Reconveyance Substitution of Trustee and Deed of Reconveyance (For Deed of Trust) Contract of Sale Memorandum of Contract of Sale Release of Memorandum of Contract of Sale Notice of Right to Lien Notice of Mechanics Lien Notice of Completion Release of Notice of Lien by Surety Bond Release of Prospective Lien by Surety Bond Unconditional Waiver upon Progress Conditional Waiver upon Progress Unconditional Final Waiver of Lien Conditional Final Waiver of Lien Lis Pendens Lis Pendens Release

Important: County or Independent City-Specific Forms

Our discharge of lien forms are specifically formatted for each county or independent city in Nevada.

After selecting your county or independent city, you'll receive forms that meet all local recording requirements, ensuring your documents will be accepted without delays or rejection fees.

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