Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM A person who furnishes services or materials pursuant to a real estate improvement contract has a construction lien. Includes artchitects. Omaha Nat. Bank v. Cont’l W. Corp., 202 Neb. 238, 241, 274 N.W.2d 867, 869 (1979) NE CODE § 52-131 DEADLINE TO PERFECT Lien must be filed within 120 days from the final furnishing of services or materials. NE CODE § 52-137 BROKEN PRIORITY Lien attachment date is contingent upon whether a notice of commencement (NOC) has been filed under NE CODE § 52-145: • If NOC Filed: lien attaches as of the date NOC filed regardless of when visible commencement began; • If NO NOC Filed: earlier of visible commencement or recordation of lien • If NOC Filed but then Lapsed: If visible commencement before or within 30 days of NOC lapsing, lien attaches either (1) time the lien is recorded, if recorded within 30 days of NOC lapsing or (2) lien relates back and attaches 31 days after NOC terminated. EXCEPTION: • Refinance of Security Interest that Has Priority over Mechanics’ Lien: Subsequent security interest, which was used to pay a debt that has priority over construction lien, will maintain priority (refinance of prior indebtedness, for example). NE CODE § 52-137(4) • Advances on a Previously Recorded Mortgage: Advances made after mechanics’ lien attaches are generally subordinate; however, will maintain priority if used to pay for improvements. NE CODE § 52-137(3) • Protected Parties as defined under NE CODE § 52-129(1): Will take free of all construction liens, despite recorded NOC, if no recorded claim of lien. NE CODE § 52-137(5) NE CODE § 52-137 DURATION OF LIEN Lien must be enforced within 2 years after recording of the same. Lien will continue during proceeding. EXCEPTIONS: Lien will lapse if not enforced within 30 days of an owner/mortgagee giving claimant a written demand to commence judicial proceeding NE CODE § 52-140 CONTENTS OF LIEN (1) Description of subject property sufficiety to ID; (2) name of person against whose interest the lien is claimed; (3) name and address of claimant; (4) name and address of person contracted with; (5) description of services performed/materials furnished; (6) contract price of services or materials; (7) unpaid amount; and (8) time of last services/materials or an estimate of such time if not yet complete. Substantial compliance is sufficient and attachments can be read together as satisfying required contents. Crowell Lumber & Grain Co. v. Ryan Co., 110 Neb. 225, 193 N.W. 609, 610 (1923). NE CODE § 52-147 NEBRASKA NEBRASKA – 530 – 1. This chart is to be used strictly as a guideline to facilitate mechanic’s lien inquiries. Parties using this resource should ensure they are independently confirming the information contained herein before relying on the same. NATIONAL COMMERCIAL SERVICES BY STATE MECHANIC’S LIEN

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