Merger of lien with fee; when presumed.
Whenever an interest in the fee title to any real estate in this state and an interest in a mortgage or other lien affecting the same interest shall become vested in the same person, and such person subsequently conveys such fee title by deed, unless a contrary intent is expressed by the terms of such deed, it shall be conclusively presumed in favor of subsequent purchasers and encumbrancers for value and without notice, that such lien interest merged with the fee and was conveyed by such deed and that such lien was thereby released from the fee interest so conveyed.
Source:Laws 1935, c. 150, § 1, p. 555; C.S.Supp.,1941, § 76-273; R.S.1943, § 76-274.
A mortgage does not merge in the fee title where there is no identity of ownership of the mortgage and the fee title; thus, there can be no merger where a lien attaches to the entire property and the interest in the fee title was that of a joint tenant. County of Keith v. Fuller, 234 Neb. 518, 452 N.W.2d 25 (1990).
Merger occurs under this section only when a person who has an interest in the fee title and an interest in a lien subsequently conveys the fee title to a third person. The action bringing about the merger is the subsequent conveyance. Whipple v. Commercial Bank of Blue Hill, 6 Neb. App. 249, 572 N.W.2d 797 (1997).