Nebraska Lien: A Complete Guide to Liens in the State

A lien is a legal claim on a property that ensures a debt or obligation is paid back. It stops the property from being sold or mortgaged until the debt is settled. To know how liens work in Nebraska, it is critical to understand the different types of liens, how to search lien records, their duration, and the steps to remove them.

What Is a Lien in Nebraska?

In Nebraska, a lien is a legal claim a creditor has on a debtor's property. For creditors, liens serve as a vital tool to ensure they get repaid. Liens can be placed on real property, such as homes, land, and commercial buildings, or on personal property, including vehicles, equipment, or business assets. Once a lien is recorded, it becomes part of the public record, which means that potential buyers, lenders, and title companies are informed about any outstanding debts.

For property owners, having a lien can make it harder to refinance or even sell their property. For buyers, checking for liens is a crucial part of doing their homework before making a purchase.

Types of Liens in Nebraska

The most common liens filed in Nebraska include:

Property Tax Liens

A property tax lien is a claim against a property made by the county government due to unpaid property taxes. In Nebraska, this lien allows local County Treasurers to sell the properties at a tax sale to cover the unpaid amounts. This is because Nebraska law has a waiting period known as a “redemption” period, which lasts for 3 years. During this time, the owner can legally pay off the debt and get their property back. The Certificate of Purchase serves as proof of the investor’s interest in the property while the redemption period is ongoing.

Construction Liens A construction lien is a type of lien that provides contractors with a security interest in a property until they receive payment for their work done on that property. In Nebraska, it is required that aconstruction lien be recorded within 120 days after the last labor or materials have been provided to the project. This lien remains enforceable for two years after it has been recorded.

Judgment Liens A judgment lien is a legal claim that a creditor files against a debtor's property once a court has ruled in the creditor's favor. In Nebraska,every judgment and order for monetary payment is considered a lien on real estate and any personal property that is registered with a county office.

Municipal Liens Municipal liens are legal claims placed on a property due to violations of local laws. These usually come from unpaid fines for things like zoning issues, property maintenance problems, or other rule violations. The main goal of these liens is to make property owners follow local regulations.

How to Search for Liens in Nebraska

Lien records in Nebraska are accessible to the public and can be searched through various sources:

• County Register of Deeds Offices: Every one of Nebraska's 93 counties keeps track of property and lien filings. You can search by the owner's name, parcel number, or property address.
• Online County Databases: Larger counties, such as Douglas (Omaha), Lancaster (Lincoln), and Sarpy, offer online portals for searching property records and liens.
• Nebraska Court Records (JUSTICE system): You can find judgment liens using the state's online case access system.
• Title Companies and Third-Party Services: These companies offer detailed lien searches, which are especially helpful during real estate transactions.

Lien Records in Major Nebraska Cities

Nebraska's lien records are organized by county, which means you need to check with the specific county office for searches:

• Omaha (Douglas County): The Douglas County Register of Deeds maintains property and lien records. Interested persons can access lien records online via the county's Register of Deeds website.
• Lincoln (Lancaster County): Lancaster County Register of Deeds offers lien search services both online and in person.
• Bellevue (Sarpy County): The Sarpy County Register of Deeds is in charge of lien and property filings.
• Grand Island (Hall County): Hall County Register of Deeds handles lien filings, and you can access them in person.
• Kearney (Buffalo County): Buffalo County Register of Deeds maintains lien and property records.

How Long Does a Lien Stay on Property in Nebraska?

The duration of liens in Nebraska varies based on the type:

• Property Tax Liens: Property tax liens are valid until they are paid off or the property is sold at a tax sale. Usually, the redemption period is about 3 years.
• Mechanic’s Liens: These generally need to be enforced within 2 years after filing, or else they will expire.
• Judgment Liens: Judgment liens are valid for 5 years. However, you can renew this type of lien if the debtor does not pay what they owe within the 5 years.
• Mortgage Liens: These liens are valid until the mortgage loan is fully paid and a release is officially recorded.

How to Remove a Lien in Nebraska

To remove a lien in Nebraska, you need to either pay off the debt or challenge the lien's validity. Common approaches include:

1. Paying the Debt in Full: The first step in removing a lien is to pay off your debt. In most cases, a lien will remain active until you pay the debt.
2. Negotiating a Settlement: Sometimes, creditors may agree to accept a partial payment or set up a payment plan. Once the debtor fulfills the requirements of the payment plan, a lien release will be issued by the creditor.
3. Court Petition: Property owners have the option to contest liens that are invalid, fraudulent, or not properly filed in court.
4. Recording a Release or Satisfaction: It is always best to ensure that the lienholder records the release with the appropriate office after you have paid off the debt.

In Nebraska, liens protect creditors and ensure that property owners meet their obligations. It is important for owners, buyers, and lenders to understand the different types of liens in Nebraska and the steps to release them to prevent issues in property transactions. Given that Nebraska has strict timelines for filing and enforcing liens, consulting your local county register of deeds, a title company, or a lawyer is wise to ensure proper handling of liens. By taking the right steps, property owners can keep their property titles clear and enjoy smoother real estate transactions.