Legal Question in Construction Law in Nevada

Room addition

Hello, I hired a building contractor to build a room addition with a handicap bathroom. I owe the builder approximately $7,000.00 to be paid after final inspection, which should be within the next few days. However, I just received a certified letter that I signed for. It was from an attorney representing a Plumbing Company that had done work on our new addition during construction. It stated that a lien would be put on our house if $2,500.00 is not paid within 15 days. What can I do.? I guess I can pay the Lien off and deduct that amount to the builder. But I don't want to double pay the plumbing company. And what about other subcontractors that did work?? How can if find out if there are or will be any other liens on our house now or in the future. Thank you so much. Doreen


Asked on 10/23/06, 12:24 am

1 Answer from Attorneys
Paul Malikowski Malikowski Law Offices, Ltd.

Re: Room addition

NRS 108.2457 has altered case law with respect to the use of Joint Checks. When using a release a Joint Check will only be effective when:

1. it is a two party joint check

2. endorsed by the potential lien claimant, and

3. clears the bank on which it is drawn.

Assuming these 3 elements have occurred, the Joint Check/Release will be effective to make payment to this lien claimant in the lesser of the following amounts:

1. the amount of the joint check

2. the amount the owner intended to pay the lien claimant from the joint check, or

3. the balance owed to the lien claimant for work and materials covered by the joint check.

See:

http://law.justia.com/nevada/codes/NRS-108.html#NRS108Sec2457

Your attorney can advise further.

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Answered on 10/23/06, 6:36 pm


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