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Responding to an Owner’s Demand to Institute a Judicial Proceeding for Construction Liens in Nebraska

Builders, contractors, and others assisting businesses and consumers in Nebraska with building or siding projects file liens if they are not paid in a timely manner. 

That lien is good for two years (Neb. Rev. Stat. 52-140(1)).  The contractor must file a Complaint to foreclose the lien before the end of that two year period. An Owner can also send and file a demand that the contractor institute judicial proceedings if the property owner would like the lien removed prior to the end of the two years.

Contractors that have properly filed Nebraska construction liens must file a Complaint to foreclose their construction lien before the end of the two-year period that the lien is enforceable.  The lien will then continue to be effective while that proceeding is pending (Neb. Rev. Stat. 52-140(3)).

If a property owner, holder of a security interest, or other person with an interest in the property would like to remove the lien before the end of the two year period that the lien is valid, they can send and file a demand that the contractor institute a court proceeding to enforce the lien pursuant to Neb. Rev. Stat. 52-140(2).  The Nebraska construction lien will then lapse if the contractor fails to file a complaint to foreclose on the Nebraska construction lien within thirty days of receipt of that notice (Neb. Rev. Stat. 52-140(2)).

Many of our owners want to pay whatever is owed to  their Nebraska contractors.  However, Nebraska commercial or residential property owners that want to remove a lien that they do not believe is valid can send a demand that the contractor begin court proceedings.  If the contractor doesn’t file suit to foreclose their lien within thirty (30) days, the Nebraska construction lien will no longer be effective. For questions about liens, contact an attorney at our Omaha, Sioux City, or Sioux Falls office today.

Angela Madathil is happy to assist Nebraska commercial and residential property owners send a notice to institute judicial proceedings.  Angela is also happy to assist if Contractors, Siding Companies, Roofers and other service providers in Nebraska, Missouri, and Kansas need assistance filing a construction lien, or filing suit to enforce and foreclose on the lien.

Angela Madathil is a Nebraska Construction Attorney and provides legal assistance to Contractors, Roofing Companies, Siding Companies, Architects, and Engineers in Nebraska, Missouri, and Kansas.   This can involve contract review and negotiation, ongoing contract guidance during a project, and risk mitigation when issues arise.  The Goosmann Law Firm team advises Contractors, Architects, and Engineers throughout the Midwest and has attorneys licensed in Iowa, Kansas, Minnesota, Missouri, Nebraska, South Dakota, and other states.