Contractors and suppliers can file mechanics lien Nebraska if they are not paid for their work on a construction project. This legal tool, known as construction liens, grants the unpaid party a security interest in the property.
At CRM Lien Services, we specialize in ensuring that you get paid quickly and reliably. We can prepare and file mechanics liens for you, taking into account Nebraska mechanics lien law and state-specific rules and regulations.
This guide outlines the necessary steps, rules, and deadlines for filing a Nebraska mechanics lien, ensuring you secure the payment owed to you.
Key Takeaways
- Eligibility: Most construction participants, including contractors, subcontractors, laborers, suppliers, landscapers, architects, and designers, have lien rights in Nebraska. Suppliers to suppliers and those below 1st-tier subcontractors do not.
- Filing Requirements: File a mechanics lien within 120 days from the last day of work. Ensure the lien form includes all required details and file it with the county Register of Deeds. Serve a stamped copy to the property owner within 10 days of filing.
- Legal Considerations: Liens generally exclude attorney fees and finance charges but may include indirect damages if the contract is substantially completed. Amendments are allowed before the filing deadline. Liens are effective for two years and may require foreclosure action if unpaid.
- Nebraska Lien Laws: Understanding Nebraska lien laws is crucial for proper filing and protection of payment rights. These laws are particularly complex for mechanics liens involving construction workers and suppliers. Ensuring compliance with these laws helps safeguard payment rights in Nebraska’s construction industry.
Who Can File a Nebraska Mechanics Lien?
In Nebraska, mechanics lien rights typically extend to prime contractors, subcontractors, laborers, suppliers, landscapers, architects, surveyors, and designers. Architects and design professionals can claim a mechanics lien even if the project has not physically commenced. Lien rights are often tied to a real estate improvement contract.
However, suppliers to other suppliers and suppliers to parties below 1st tier subcontractors do not have lien rights in Nebraska.
Material suppliers can claim lien rights only if the materials are incorporated into the property (assumed if delivered to the improvement) or if they are specially fabricated, unincorporated materials that cannot be readily resold in the ordinary course of business.
Can an Unlicensed Contractor File a Nebraska Mechanics Lien?
Nebraska does not have specific licensing requirements for a lien claimant’s ability to file a mechanics lien. However, if a party is required to be licensed for the work they perform, it is strongly recommended to hold the appropriate license.
When Is the Deadline to File a Nebraska Mechanics Lien?
In Nebraska, a mechanics lien must be filed within 120 days from the last date the claimant provided labor and/or materials to the project.
What Information Should Be Included in a Nebraska Mechanics Lien?
The form and content of a Nebraska mechanics lien claim are governed by Neb. Rev. Stat. §52-147 and must include the following information:
- Property Description
- Owner’s name
- Claimant’s name and address
- Hiring party’s name and address
- Description of labor and/or materials provided
- Amount unpaid (and if no fixed amount by contract, a good faith estimate marked as an “estimate”)
- Last date of furnishing labor and/or materials (or estimated completion date if the project is ongoing)
Properly preparing a Nebraska mechanics lien form is crucial to ensure all required information is included and the form is notarized before filing.
Can Attorney Fees, Collection Costs, or Other Amounts Be Included in the Lien Amount?
It depends. In Nebraska, attorney’s fees, interest, finance charges, and other non-project-related charges cannot be included in the lien claim amount.
However, a general contractor may be eligible for indirect or consequential damages (such as overhead, delay damages, and lost profit) if they have substantially completed the contract. If the lien claimant is terminated before substantial completion, these damages are not recoverable.
Where Do I File and Record a Nebraska Mechanics Lien?
Nebraska mechanics liens must be recorded with the county Register of Deeds office. To ensure your lien is valid, you must file it in the county where the project is physically located. Each county in Nebraska has its own specific rules and requirements.
Can a Nebraska Mechanics Lien Be Amended?
Yes, a filed mechanics lien in Nebraska can be amended anytime before the lien filing deadline expires. Amendments made after this deadline are permitted only to reduce the claim amount, reduce the real estate covered by the claim, or make an apportionment among lots in a platted subdivision.
What Is Nebraska’s Notice of Right to Assert Lien Form?
According to Nebraska statutes, certain “unsophisticated” parties, such as residential homeowners, have special protections against mechanics lien claims.
Liens against these parties are limited to the lesser of:
- (a) the amount unpaid under the claimant’s contract or
- (b) the amount unpaid under the prime contract through which the claimant claims at the time the contracting owner receives the claimant’s notice of lien liability.
If a contractor or supplier fails to send this notice to a protected party, they still retain the right to file a Nebraska mechanics lien for non-payment. However, the amount they can claim may be significantly reduced. Sending a Notice of Right to Assert Lien helps ensure full payment protection and secures the right to file a “full-price” lien.
5 Essential Things to Know About Nebraska Mechanics Liens?
Nebraska’s Construction Lien Act provides strong lien rights to construction participants. If a contractor or supplier isn’t paid for a Nebraska job, filing a lien can expedite payment and offer protection. However, specific requirements and rules must be followed.
Here are five essential things to know about Nebraska’s mechanics lien law.
- Eligibility of Participants: All project participants, except suppliers to suppliers or suppliers to parties lower than 1st-tier subcontractors, have mechanics lien rights. This includes prime contractors, subcontractors, laborers, suppliers, landscapers, architects, surveyors, and designers. Architects and design professionals can claim lien rights even if the project hasn’t started.
- Filing Deadline: The deadline to file a mechanics lien in Nebraska is 120 days from the last day a project participant provided services or materials.
- Notice Requirements: Preliminary notice is not typically required in Nebraska, except for “protected parties” such as owners of residential owner-occupied single-family properties (1-4 units), vacant land intended for residential use, or condominium units. In these cases, a Notice of Intent to Lien may be necessary. Once a mechanics lien is filed, a stamped copy must be sent to the property owner within 10 days of recording. It’s recommended to send this by priority mail for proof of delivery.
- Fees and Damages: Attorney’s fees, collection costs, and other amounts are generally not included in a Nebraska mechanics lien. However, indirect or consequential damages (such as overhead, delay damages, and lost profit) may be allowed for a general contractor if they have substantially completed the contract. If the lien claimant is terminated before completion, these damages are not recoverable.
- Lien Duration: A Nebraska mechanics lien is typically effective for two years. An action to enforce the lien must be initiated within this period. If the property owner or another interested party demands action, the deadline changes to 30 days from receipt of the written request.
- Construction Lien Rights Signed: A written waiver of construction lien rights signed by the claimant can significantly impact their rights and obligations. Such waivers are valid and binding regardless of when they are executed for contracted services or materials. They can cover all lien rights or be limited to specific services or materials. Signing these waivers means the claimant relinquishes their right to file a lien for the specified services or materials, which can affect their ability to secure payment.
How to File a Mechanics Lien in Nebraska?
When a contractor, subcontractor, supplier, or other construction professional isn’t paid for work on a Nebraska project, they have the right to file a construction lien. This step-by-step guide will help you navigate the requirements of the Nebraska Construction Lien Act and walk you through the process.
Use the Right Mechanics Lien Form:
It’s crucial to ensure your mechanics lien form includes all required information. Nebraska’s mechanics lien laws demand strict compliance with specific statutory requirements. Missing any required information can invalidate the lien, making it unenforceable. Properly preparing a Nebraska mechanics lien form is essential to meet these requirements and ensure the form is notarized before filing.
While Nebraska provides guidelines for liens on railroads or similar utilities, the requirements for other projects are less clear.
However, including the following information is generally good practice:
- Owner’s name
- Claimant’s name
- Description of the property
- Detailed statement or account of the demand due
- Dates when the material was furnished or labor performed
- Signature verifying the lien by affidavit
How to File a Nebraska Mechanics Lien
Step 1: Prepare the Lien Form – Fill out the lien form with all relevant information and sign it in the presence of a notary. Ensure the affidavit is notarized.
Step 2: Record Your Lien – Submit the completed lien form to the register of deeds in the county where the property is located. You can deliver it by mail, FedEx, or in person. Include the proper recording fees, which vary by county. If mailing the lien, include a self-addressed stamped envelope for the return of a recorded copy, as Nebraska requires a stamped copy to be served on the property owner.
Step 3: Serve a Copy of the Mechanics Lien – Filing the lien isn’t enough. You must serve a stamped or recorded copy of the lien on the property owner within 10 days of filing. Service can be done via certified mail.
After Filing: Once the lien is filed and served, it’s ready to help you secure payment. However, liens can be challenged and must comply with recording, timing, and notice requirements to be enforceable. A Nebraska mechanics lien is effective for two years from the filing date. If you aren’t paid within this period, you may need to enforce the lien through a foreclosure action. This step often ensures payment but can be a lengthy process.
Get in Touch
In Nebraska, contractors and suppliers can file a mechanics lien if they are not paid for their work on a construction project. This legal tool grants the unpaid party a security interest in the property.
At CRM Lien Services, we have been serving customers across the country with required reference documentation for lien claims since 1986. We assist property owners in navigating the mechanics lien process, informing them about their rights and responsibilities, including providing notices, securing payment, and releasing mechanic’s liens.
We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a mechanics lien, give us a call or shoot us an email.
We would love to work with you and help you lower your risk and get paid fast!
