What your Contractor Must Make Sure You Know
When you enter into a contract, there are certain disclosures that your contractor must provide to you in writing. Disclosures must be provided by
•General contractors
•Residential contractors and
•Swimming Pool and Spa contractors
For residential projects, your contractor may need to provide General
Contractor and Residential Recovery Fund disclosures. The disclosures
are required by law to inform you of your rights as a homeowner.
The disclosures are as follows:
General Contractor Disclosures
NRS 624.600 Required disclosures by general building contractor. A general building contractor shall provide in writing to the owner of a single-family residence with whom he has contracted:
1.The name, license number, business address and telephone number of:
(a) All subcontractors with whom he has contracted on the project; and
(b) All persons who furnish materials of the value of $500 or more to be used in the project.
2.A notice that a person described in subsection 1 may record a notice of lien upon the residence of the owner and any building, structure and improvement thereon pursuant to the provisions of NRS 108.226.
3.An informational form, whose contents must be prescribed by the Board,
regarding:
(a) Contractors pursuant to chapter 624 of NRS; and
(b) Mechanics’ and material-men’s liens pursuant to chapter 108 of NRS.
GENERAL BUILDING CONTRACTORS: REQUIRED DISCLOSURES
NAC 624.693 Informational form regarding mechanics’ and material-men’s liens. (NRS 624.100, 624.600) The informational form that a general building contractor is required to provide regarding mechanics’ and material-men’s liens pursuant to paragraph (b) of subsection 3 of NRS 624.600 to the owner of a singlefamily residence with whom he has contracted must be as follows:
‘NOTICE TO OWNER’
Pursuant to NRS 108.221 to 108.246, inclusive, a contractor, subcontractor, laborer, supplier of materials or other person or entity who:
1.Performs work or furnishes materials of the value of $500.00 or more to improve the value of your property; and
2.Is not paid for the work or materials has a right to place a lien on your property on which the work was performed and to sue you in court to obtain payment.
This means that after a court hearing, your property could be sold by an officer of the court, and the proceeds of the sale would be used to satisfy the amount you owe. If you did not ask for and receive releases of liens from the contractors’ subcontractors, laborers or suppliers of materials, a lien may be placed on your property, or you may be sued even if you have paid your contractor in full.
To preserve their right to file a claim or lien against your property, certain claimants, such as subcontractors, laborers and suppliers of materials, are each required to provide you with a document called a “preliminary or pre-lien notice.” A preliminary or pre-lien notice is not a lien against your property. Its purpose is to notify you regarding persons or entities who may have a right to file a lien or claim against your property, if they are not paid. To perfect their lien rights, contractors, subcontractors, laborers and suppliers of materials must file mechanics’ liens with the county recorder, which then become recorded liens against your property. Generally, the maximum time allowed for filing a mechanics’ lien against your property is 90 days, after substantial completion of your project.