CREW Las Vegas Blog
by: Jim Slack - Fidelity National Title Group NCS
One of the potential pitfalls that may arise at the time of closing and is often a surprise to the parties of the transaction is called “Broken Priority”. The possibility of Broken Priority is an issue that all commercial real estate professionals should be aware of in order to advise their clients and avoid a potential delay in closing and possibly losing a lenders commitment to make a loan. Many developers and builders are familiar with the timeframes and requirements involved with construction projects, but sometimes subcontractors and workers may not be aware that being proactive on a project may significantly delay or compromise the closing.
Broken Priority in Nevada, is established when any work on a project begins before any transactional documents on the property have been recorded. Lenders will typically require a title insurance policy to be issued insuring a priority position over all other parties in the chain of title. If there is Broken Priority, the title company typically will not issue a policy without including a mechanic’s lien exception.
If construction commences before recording, the mechanics liens would have priority over any deed of trust recorded against the property. Once priority is broken, every subsequent encumbrance and conveyance of a property are subordinate and subject to the mechanics liens position. Even if the lien notifications are recorded in the future regardless of the recording date, they still take priority and can jeopardize the lenders interest in the property. This is contrary to the “first in time, first in right” rule that many learn in Real Estate Law classes.
With regards to Nevada law, the express priority hierarchy is established in the Nevada Revised Statutes and it prohibits any contractual or verbal waivers of the mechanics lien priority provision of the statute. A Lien is considered a statutory right that cannot be waived or modified. Any attempt in a contract to waive lien rights of contractors or suppliers is considered void.
Some common examples of Broken Priority include, but are not limited to, portable toilet rentals, fencing and supplies, pruning, cleared brush, staking or markings by surveyors, recent equipment tracks, materials and equipment visible during a reasonable inspection of the site, even if waiting nearby.
New construction is not the only time Broken Priority can become an issue. Sales or refinances of existing buildings may also subject to issues from Broken Priority. If construction or the impression that work has commenced on a property come up during the inspection it can halt the process until the statutory lien period has expired. This can also include work done by a tenant of the property.
A preferred solution to Broken Priority is to take a hands off approach with the land or building until after closing the transaction with the title insurance policy firmly in place.
Provided to you by:
We Offer Nationwide, and Local Las Vegas Services:
Get Access to Industry Experts Across the CRE Spectrum:
We Are a Team of Experienced Insurance & Escrow Professionals
For more information regarding your title needs, you can go to www.fntic.com or call Jim Slack at 702.701.2654
by: Judy Hanf - Special Events Committee
And they’re off! On the back stretch, it’s neck and neck, or in this case maybe stick and stick, between the horses. It’s Bullet Trane on the outside - with Dirty Mudder coming up fast! And it’s Bullet Trane (Lawyer Trane Mechanical) by a nose - actually by a roll of some very large dice - to win the first annual CREW Las Vegas Run for the Roses. Dirty Mudder (DRRT) came in 2nd place, and Roofin Rosie (Commercial Roofers, Inc.) took the final place to show.
The Las Vegas Country Club played host to the 10th Annual CREW Charity Event, and par for the course, it was a perfect venue. Aside from a little wind, the weather was a perfect mid 80s. Over 120 people were in attendance for the inaugural derby themed event and race. Food, libations and good conversation were on display in ample quantities. There was a guilty pleasure for everyone, from appetizers and finger food to the dessert bar. There was even a signature drink, designed especially for the event, courtesy of Jim Beam.
The horse races were a first for the Las Vegas Country Club which, of course, is usually known for it’s premier golf course. The field was made up of two heats of horses, all jockeying for a position in the final run. The thoroughbreds came from all over Las Vegas. There was Mike from Wells Fargo Bank, the Flushing Flash from AF Construction, Fuggedaboutit from the Palmeri Wainwright Team, and Show Me The Money from Kim Walker CPA. We can’t forget the Dri Tech entry Bubbles and Butterfly from the Bilmar Companies. Rusty Nail, from AJB General Contractors gave it his all, as did Trojan Horse from OSI and Happy Feet from Maria’s Bounce House. Colts and fillies alike wore the colors of their companies, displaying a grandeur that has not been seen in in the city since the days of original horse races at Las Vegas Park. Now the race is over, the excitement has faded, and the horses are back in their stalls.
Away from the excitement of the racetrack, the stage was set for the silent auction. Attendees milled about the area, watching and waiting to see if their chosen prize had been outbid and if they needed to add just a bit more to the ante. In the end it didn’t matter who won what, as proceeds were to be donated to the local charity Horses 4 Heroes. There was also a gem of a prize to be won in the treasure chest. Keys were sold throughout the evening for a chance at taking home the coveted prize. Berger & Sons jewelers had graciously donated a diamond encrusted pin. Lori Thomas from the Review Journal was the lucky winner.
Just as the Kentucky Derby is held every year, we hope that we will again hear the trumpets call the thoroughbreds to the starting line, the grandstands will again be full of spectators, and the paddock full of horses. Watch for details for the next CREW Annual Charity Event and mark your calendar for April, all to support the local charity for the next Run for the Roses.
Call or Fax Us
Fax: +1 (702) 798-8653
P.O. Box 97873Las Vegas, NV 89193
©Commercial Real Estate Women Las Vegas
Commercial Real Estate Women-Las Vegas is a 501(c)(6) non-profit organization.