Assigning a Construction Lien in Nebraska

Construction liens are governed under the Nebraska Construction Lien Act, found at Sections 52-125 to 52-159 of the Nebraska Revised Statutes.

Once a lien is in place, the claimant can transfer the right to collect on that lien to someone else. This is known as "assignment." One of the fundamental principles of contract law is the right to assign contract rights to a third party. For example, Tom contracts with Jerry to build Jerry a house. Tom then assigns the right to payment for the house to Fred (maybe he owes Fred some money on a debt). With the basic legal terminology clarified, let's move on to how lien assignments work in Nebraska.

A claimant having a recorded lien, or his or her assignee, may record an assignment signed by the claimant which sets forth: (1) the name of the claimant, (2) the name and address of the assignee, (3) the person against whom the lien is claimed, (4) the real estate affected with a description thereof sufficient for identification, and (5) the record location and date of the recording of the notice of lien. Neb. Rev. Stat. 52-149(1).

The claimant files the completed assignment in the recording office for the county where the subject property is situated. Note that, in addition to the statutory content requirements, the form must adhere to all state and local standards for recorded documents.

Even after 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. Neb. Rev. Stat. 52-149(2). 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. Id.

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. Neb. Rev. Stat. 52-149(3). The failure to record an assignment does not otherwise affect its validity. 52-149(4).

This article is offered for informational purposes only and is not legal advice. This information not be relied upon as a substitute for speaking with an attorney. Please speak with a Nebraska attorney familiar with construction lien laws for questions about lien assignments or any other issues related to construction liens.

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