(1) A contracting owner may terminate a notice of commencement as to all or any identified portion of the real estate subject to the notice of commencement by:

(a) Recording a notice of termination denominated termination of notice of commencement and containing:

(i) The information required by subdivisions (1)(a) and (1)(b) of section 52-145 for a notice of commencement;

(ii) A reference to the recorded notice of commencement by its record location and a statement of its date of recording;

(iii) A statement of the date as of which the notice of commencement is terminated which date may not be earlier than thirty days after the notice of termination is recorded; and

(iv) If the notice of termination is to apply only to a portion of the real estate subject to the notice of commencement, a statement of that fact and a description of the portion of the real estate to which the notice of termination applies;

(b) Sending, at least three weeks before the effective date of the notice of termination, a copy of the notice of termination, showing the date it was recorded, to all claimants who have requested that the owner notify them of the recording of a notice of termination;

(c) Publishing a notice of the recording of the notice of termination, which notice must comply with the provisions of subsection (2) of this section and be published at least once a week for three consecutive weeks in a newspaper having general circulation in the county where the recording occurs, the last publication of which must be at least five days before the stated termination date; and

(d) Recording an affidavit stating that notice of the recorded notice of termination has been sent to all claimants who have requested notice and that publication has been made. The affidavit must state the newspaper and dates of publication and include a copy of the published notice.

(2) The published notice of the recording of the notice of termination must contain the information required for the notice of termination under subsection (1) of this section, a statement of the date on which the notice of termination was recorded, and a statement that all lien claims for which a notice of lien is not recorded by the termination date may be defeated by a transfer of the real estate.

(3) A purchaser, judgment creditor, or other person having a lien against the real estate may rely on the affidavit without obligation to inquire as to its accuracy, and is not prejudiced by its inaccuracy.

Annotations

Nothing in the Nebraska Construction Lien Act prevents a contractor's lien from attaching to the real estate improved or directly benefited after a notice of commencement has lapsed, either by the running of its duration or its termination. Nore Electric v. S & H Holdings, 316 Neb. 197, 3 N.W.3d 895 (2024).
The ability of the contracting owner's interest to be subject to future construction liens passes with a conveyance of the interest. The law serves as notice that such a lien may be filed. Nore Electric v. S & H Holdings, 316 Neb. 197, 3 N.W.3d 895 (2024).

(1) A claimant may record a lien which shall be signed by the claimant and state:

(a) The real estate subject to the lien, with a description thereof sufficient for identification;

(b) The name of the person against whose interest in the real estate a lien is claimed;

(e) A general description of the services performed or to be performed or materials furnished or to be furnished for the improvement and the contract price thereof;

(f) The amount unpaid, whether or not due, to the claimant for the services or materials or if no amount is fixed by the contract a good faith estimate of the amount designated as an estimate; and

(g) The time the last services or materials were furnished or if that time has not yet occurred, an estimate of the time.

(2) The name given in the lien in accordance with the requirement of subdivision (1)(b) of this section may be the name of the contracting owner or the name of the record holder of the contracting owner's interest at the time of recording the lien.

(1) A recorded lien may be amended by an additional recording at any time during the period allowed for recording the original lien. An amendment adding real estate or increasing the amount of lien claimed is effective as to the additional real estate or increased amount only from the time the amendment is recorded.

(2) A recorded lien may be amended after the period allowed for recording the original lien for the purpose of:

(3) An amendment shall state the record location and date of recording of the notice of lien being amended and shall state the respects in which it is being amended.

(1) A claimant having a recorded lien, or his or her assignee, may record an assignment signed by the claimant which sets forth the name of the claimant, the name and address of the assignee, the person against whom the lien is claimed, the real estate affected with a description thereof sufficient for identification, and the record location and date of the recording of the notice of lien.

(2) Even though an assignment has been recorded, an owner may continue to deal with the original claimant as to the claim until the owner receives notice of the assignment and a direction that no arrangements or payments may be made without the assignee's consent. If requested by the owner, the assignee must furnish reasonable proof that an assignment has been made and unless he or she does so, the owner may pay the assignor.

(3) Unless a statement of assignment is recorded, the assignee need not be a party to any judicial proceeding to foreclose a security interest, lien, or other encumbrance.

(1) If a prime contractor or owner has secured a surety bond a notice of surety bond may be recorded.

(2) The notice shall be signed by the contractor or owner and by the surety company and state:

(a) The real estate being improved with a description thereof sufficient for identification;

(c) The name and address of the surety company and the name and address of a person on whom service of process may be made;

(d) The total sum of the bond and that the bond meets the requirements of section 52-141; and

(e) That the bond is for the purpose of relieving the real estate from construction liens arising under the contract between the named prime contractor and contracting owner.

(1) A person who has deposited money or a surety bond with the clerk of the district court in substitution of collateral as provided in section 52-142 may record a certificate of the clerk of the district court showing the deposit.

(2) The certificate, which shall be signed by the clerk of the district court, shall state the amount deposited, if money, or, if a surety bond, the amount of the bond and the name and address of the surety company.

(3) The certificate also shall state, on the basis of information supplied by the person making the deposit:

(a) The real estate being improved with a description thereof sufficient for identification;

(d) The name of the claimants for whom the deposit is made, the amount of their claims, and the record location of their liens.

(1) A person giving a demand to institute judicial proceedings to enforce a lien, after giving the demand, may record a copy of the demand in the office in which the lien was recorded. The demand must refer by record location to the recorded lien under which it was given, and state the date demand was given to institute judicial proceedings and the names of the owner and the claimant.

(2) A claimant who has received demand to institute judicial proceedings may record, in the office in which the lien was recorded, a statement that the total contract price is not yet due under the contract for which the lien was recorded. The statement must refer to the recorded lien by its record location and give the names of the owner and the claimant.

An owner who is entitled to apportion a lien among lots of a platted subdivision of record may record a statement making the apportionment. The statement must refer to the record location of the lien being apportioned, state the name of the owner and the claimant, state the date on which the demand to apportion was made on the claimant and that he or she has not apportioned, and make the apportionment.

(1) A lien provided by sections 52-125 to 52-159 may be discharged of record by:

(a) Recording a signed statement of the record claimant stating that the lien is released;

(b) Failing to record, within the time prescribed in the provisions on duration of lien under section 52-140, an affidavit that the total contract price is not yet due;

(c) Recording the original or certified copy of a final judgment or decree of a court of competent jurisdiction so providing; or

(d) Recording, as provided in section 52-151, a certificate of the clerk of the district court showing the deposit of substitute collateral.

(2) The lien claimant of record by partial release may reduce the amount of the lien claimed in the notice of lien or limit the notice of lien to a portion of the real estate described in the notice of commencement by recording an amendment to his or her lien showing the reduction in amount or limited portion of the real estate against which a lien is claimed.

(3) A statement under subdivision (1)(a) of this section or a judgment under subdivision (1)(c) of this section must refer by record location to the notice of lien to which it applies.

(1) Except as otherwise provided in this section, the rules applicable to a civil action apply to a proceeding to foreclose liens under sections 52-125 to 52-159.

(2) In a proceeding to foreclose a lien, all claimants having recorded liens may join as plaintiffs and those who do not join as plaintiffs may be joined as defendants. Any person who records a lien or acquires an interest in real estate after the commencement of the foreclosure proceeding may be made a defendant before judgment.

(3) The court shall determine the amount due or owing to each claimant and direct foreclosure of the liens against the real estate. Foreclosure may be by any method available for foreclosure of security interests in real estate, or otherwise, as ordered by the court.

Annotations

This section does not limit foreclosure on a construction lien to the mortgage foreclosure statutes, but instead provides that the court may utilize any method available for foreclosure, including but not limited to the mortgage foreclosure statutes. Tilt-Up Concrete, Inc. v. Star City/Federal, Inc., 261 Neb. 64, 621 N.W.2d 502 (2001).

(1) If a contracting owner records a notice of termination before abandonment or substantial completion of all the improvements covered by the notice of commencement being terminated, he or she is personally liable to any lien claimant to the extent that the claimant is unable to realize on a lien because the notice of termination was recorded before abandonment or substantial completion.

(2) A notice of termination is effective even though the owner, under subsection (1) of this section, may be personally liable to lien claimants by reason of his or her recording the notice of termination.

(1) If a person is wrongfully deprived of benefits to which he or she is entitled under sections 52-125 to 52-159 by conduct other than that described in section 52-156:

(b) The court may make orders restraining the owner or other person, or ordering them to proceed on appropriate terms and conditions.

(2) If in bad faith a claimant records a lien, overstates the amount for which he or she is entitled to a lien, or refuses to execute a release of a lien, the court may:

(3) Damages awarded under this section may include the costs of correcting the record and reasonable attorney's fees.

Annotations

A person is not wrongfully deprived of benefits to which he or she is entitled under the Construction Lien Act for merely having to foreclose on a construction lien; wrongful deprivation requires something more than merely foreclosing a construction lien. BCL Properties v. Boyle, 314 Neb. 607, 992 N.W.2d 440 (2023).
This section authorizes attorney fees in circumstances involving the wrongful deprivation of benefits or bad faith, but it does not authorize such fees in every action involving foreclosure of a construction lien. Echo Group v. Tradesmen Internat., 312 Neb. 729, 980 N.W.2d 869 (2022).
To act with bad faith, one must know his or her lien is invalid or overstated or act with reckless disregard as to such facts. Chicago Lumber Co. of Omaha v. Selvera, 282 Neb. 12, 809 N.W.2d 469 (2011).
While this section states that damages awarded may include reasonable attorney fees, it does not mandate the award of such fees. Model Interiors v. 2566 Leavenworth, LLC, 19 Neb. App. 56, 809 N.W.2d 775 (2011).

Whenever in the statutes of Nebraska, unless the context otherwise requires, the term mechanic's lien or words referring to such term occur they shall be taken to mean and apply to construction lien as used in sections 52-125 to 52-159. The Revisor of Statutes shall substitute the appropriate term or words in the statutes necessitated by this section.