Nebraska Real Estate Practices

Attorney Involvement

Please describe any requirements under applicable state law for attorney, abstractor or other special professional involvement, for example, in the search, examination, opinion of title, signing, closing, disbursement, recording, preparation of documents, and/or policy-issuance.

State Supreme Court rules prohibiting unauthorized practice of law generally exempt title insurance companies/agents with respect to document preparation and other functions incident to industry practices. 

Cancellation/Commitment Fee

Does your state permit or require a cancellation fee or commitment fee upon cancellation?

Yes. After the issuance of the commitment to insure, if the record discloses that the commitment has been acted upon by recordation of deed, mortgage, or other instruments, or if acted upon by unrecorded document or documents, apply the original issue charge. However, if the applicant cancels or no documents have been recorded and no actions have been taken by the expiration date of the commitment, a minimum charge of $25 plus extra service charges, if any must be charged. The entire charge may be cancelled if it is apparent that through error the customer has entered duplicate orders either with the same or competing companies, or if the order is cancelled prior to commencement of search.

Certificate of Release (of Mortgage)

If anyone other than the lender (such as a title agent, settlement agent, underwriter or attorney) has the authority to release the security instrument, please describe.

Yes, closing agent.

Deeds

Please describe the kinds of deeds that are customary for commercial and residential transactions. Please describe the kinds of deeds that are generally not insurable.

General warranty deed, special warranty deed, personal representative’s deed, corporation warranty deed, joint tenancy warranty deed, quit claim deed (unusual).

Joinder of Spouses

If a non-title holding spouse is required to join in the execution of a deed or a security instrument, please describe. Any analogous rights, such as those in a civil union or equivalent, should also be addressed. 

Yes, with certain narrow exceptions.

Liens and Limitations

Please contact a local state underwriter with any questions.

NEBRASKA LIEN CHART

LIEN/ENCUMBRANCE

AUTHORITY

DURATION OF LIEN

Alimony

§42-371

§42-365

10 years from latest of:

(a) judgment entry; (b) most recent payment; (c) most recent execution.  Terminates on death or remarriage unless agreed or ordered by Court

Child Support

§42-371

10 years from latest of: (a) date youngest child becomes of age or dies; (b) most recent execution

Construction Lien

§52-140

2 years from recording of lien, or 30 days after lien claimant receives written demand to institute judicial proceeding, unless claimant forecloses during the 30-day period

Corporate Occupation Tax

§21-323

No limitation period specified.    Prior to all liens except state, county & municipal taxes

Court Costs

§25-1716

5 years after (a) latest partial payment or (b) case becomes inactive or is closed by final judgment.

Deed of Trust

§76-1015; §25-205; §76-239

If nonjudicial foreclosure is used, trustee must sell the property within 5 years following maturity of the debt.  If judicial foreclosure is used, limitation period is 10 years after maturity date, if ascertainable from instrument or 30 years from date of instrument if not ascertainable unless beneficiary files affidavit stating obligation is unpaid and is still a valid lien.  This affidavit extends the limitation period an additional 10 years.

Divorce Decree, when final

§42.372.01

30 days after decree is entered or on death of one of the parties, whichever occurs first (decrees rendered after September 9, 1995. 

Estate Tax (State)

§77-2102

Due w/in 12 mos. from death; lien exists until (1) payment, (2) 10 years from date of death, or (3) release or discharge

Estate Tax (Federal)

IRC §6321, 6502(a), 6503, 6324; Neb. Title Standard 10.5

10 years after death, but may be extended in certain circumstances.  See 26 USC 2010[c] for level at which liability applies, depending on year of death.

Federal Judgment Liens

28 USC 3001

20 years if in favor of the United States

Federal Tax Liens

26 USC 6322

10 years, 30 days after assessment, unless extended. 

Federal Tax Liens; IRS Right of Redemption

28 USC 2410

120 days following foreclosure sale

 

Fines, Criminal

§29-2407

Duration of  5 years after latest partial payment or 5 years after case becomes inactive or closed

Inheritance Tax

§77-2037; Neb. Title Standard 10.4

10 years following death or 5 years following determination

Judgment

§25-1504; §25-1301(3); Neb. Title Standard 7.3, 10.2

Lien is dormant after 5 years if no execution issued; can be revived within 10 years, but dates from date of revivor.   NOTE:  A judgment attaches when rendered; it is rendered when entered; it is entered when clerk stamps and dates the judgment.  "Rendition" is the act of the court or a judge thereof in making and signing a written notation of the relief granted or denied

Judgement against county or instrumentality of the state

Ann. To §77-1619, Fremont Foundry & Mach. Co. v. Saunders County, 136 Neb. 101

Not a lien

Land Contract

§76-239; Neb. Title Standard 10.6

10 years from due date if ascertainable from instrument, or 30 years from date of execution unless extension or affidavit of valid existing lien filed

Mechanics Lien

 

See "Construction Lien"

Mortgage

§§25-202 & 76-239; Neb. Title Standard 10.3

10 years from due date if ascertainable from instrument, or 30 years from date of execution unless extension or affidavit of valid existing lien filed.

Possibilities of Reverter; Right of Re-Entry for Breach Condition Subsequent

§§76-107; 76-2,102, 76-2,104

Not alienable or devisable, valid for 30 years (maybe); don't apply to a personal representative.  Neb. Supreme Court in State vs. UPRR, 241 Neb. 675 said they are unreasonable restraints on alienation and void as against public policy.  CALL YOUR UNDERWRITER

Property Settlement

§42-371

10 years from date judgment entered, most recent payment, most recent execution, whichever is latest.

Real Estate Taxes

§77-1862

15 years after delinquent

Real Estate Taxes; Foreclosure Decree

 

Lien ceases if no order of sale issued within 10 years of date of decree

 

 

 

Special Assessment

§77-1862

15 years after delinquent

 

 

 

Spousal Joinder

§30-2313[c]; §40-104; Neb. Title Standard 5.7

Spouse of a person not domiciled in Nebraska need not join in execution.  Husband and wife must both sign and acknowledge the same instrument if conveying or encumbering their homestead real estate.

Spousal support

§42-371

See "Child Support"

State Tax Lien

§77-3904

10 years from filing for record; until paid or until judgment based on lien liability becomes unenforceable or is satisfied.  Continuation statement may be filed

Temporary Order, Child Support/Alimony

Hall vs. Hall, 126 NW2nd, 839

Terminate with rendition of final divorce decree

Unemployment Compensation

§48-657

Lien filed prior to May 1, 1999:  Apply limitation period for mortgages.  Lien filed after May 1, 1999: lapses at expiration date or 5 years after filing unless notice of continuation filed, which will be continued for a period ending 10 years after filing of the original lien.

Mortgage Tax

Is there a mortgage tax in your state? If yes, is it uniform across the state or does it vary? If it is uniform, please describe. 

No.

Payment Customs

Who customarily pays for:
(a) Owner’s Policy?
 Split
(b) Transfer Tax & Recording Fee? Seller
(c) Survey Charges? Buyer
(d) Closing/Settlement Fees? Customarily split, but negotiable

Policy Countersignatures

Please describe any statutory or regulatory requirements for countersignatures in order to issue the policy (for example, residency requirements). 

Licensed, appointed agent.

Real Estate Taxes

Please describe the general tax year, due dates, and delinquency dates, including lien dates and payment cycle.

Varies depending on county; proration practices vary also. Please consult a local underwriter for information relating to real estate taxes on the subject property.

Search and Examination Fees

Is it permissible and/or customary to charge a separate search and/or examination fee, and under what circumstances? If your jurisdiction is all-inclusive, please state that.

Filed rates are all-inclusive of search and exam fees.

Search Requirements

Is there a minimum period of time for a title search required: (a) by state law, (b) pursuant to marketable record title acts, or (c) by any other applicable title examination standards (e.g., state bar association)? Please respond to each category. If a minimum search period exists for any category, please state it.

There is no minimum period of time for a title search required by state law. There is a Marketable Title Act. The Act extinguishes a variety of interests (with several exceptions) if the current record titleholder or immediate or remote grantors have an uninterrupted chain of title for at least 22 years. 

Security Instruments (Deed of Trust vs. Mortgage)

Please describe the customary and permissible form(s) of security instruments used in your state. 

Mortgage, Trust Deed

Who can be listed as the trustee on the Deed of Trust (e.g., residency and/or natural person requirements, etc.)? Can an underwriter or title agent be designated as the trustee, and, if so, is it customary?

Nebraska Licensed Attorney, Nebraska Real Estate Broker, Bank, Building and Loan, Savings and Loan or Credit Union doing business under U.S. or Nebraska Law, Nebraska Trust Company, Title Insurer authorized to do business in Nebraska (Insurers commonly named as Trustee).

Standard Exceptions and Requirements

Please identify the standard exceptions and requirements that are customarily used in your state.

Standard Exceptions

1. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.

2. Taxes or special assessments which are not shown as existing liens by the public records.

3. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or any overlapping of improvements or other boundary or location disputes (can be eliminated or amended in mortgagee's policy upon proper evidence being furnished.)

4. Restrictive covenants affecting the property described in Schedule A.

5. Rights or claims of parties in possession, and not of record in the public records; liens for labor, services or materials or claims to same which are not of record in said records.

6. Any roadway or easement, similar or dissimilar, on, under, over or across said property, or any part thereof and not of record in said records.

7. Any titles or rights asserted by anyone, including but not limited to persons, corporations, governments, or other entities, to tidelands, or lands comprising the shores or bottoms of navigable rivers, lakes, bays, ocean or gulf or lands beyond the line of the harbor or bulkhead lines as established or changed by the United States Government or riparian rights, if any.

 

 

State-specific Policy Variations

If there are state-specific changes to the provisions in the ALTA policies (e.g., Arbitration, Minerals), please describe.

None.

Title Insurance Form and Filing Regulations

Please describe the form and/or rate filing requirements, if any, related to policies and endorsements. Please describe any applicable rating bureau. 

All forms and rates must be filed with and approved by the Department of Insurance. With respect to forms only, statute provides that forms are deemed approved if no action taken by the Department within 30 days of submission.

Transfer Taxes

Is there a transfer tax in your state? If yes, is it uniform across the state or does it vary? If it is uniform, please describe.

Yes, uniform $2.25 per $1000.00 of consideration; several statutory exemptions.

Usury

Is usury coverage available?

Yes.

Withholding Taxes

What are your state’s requirements, if any, with regard to withholding proceeds from a sale, similar to but not including FIRPTA?

No separate state requirements.

Witness Requirements

Are witnesses required on a deed or security instrument? If so, please describe.

No witness requirement.