Nebraska Notice of Commencement
FAQs & Guide

No, there is no specific requirement that a Notice of Commencement be filed by a property owner or construction lender on projects in Nebraska. However, filing an NOC can have benefits for property owners and construction lenders. A contracting property owner can 1) set the date of attachment for any subsequent lien claims; and 2) limit the availability of liens “to a particular improvement project, or portion thereof, on the real estate.”

Sometimes. When a Notice of Commencement is filed by a “claimant who is entitled to record a lien” that party must provide a copy of the notice to the property owner. This copy must be sent to the property owner “not later than the day [the Notice of Commencement] was recorded.”

If this requirement is not met, the claimant filing the Notice of Commencement is liable to the property owner for any damages caused by the failure to comply.

Since there is no specific requirement for a property owner or a construction lender to record a Notice of Commencement in Nebraska, there are no required deadlines by which it must be filed.

However, there are still timing considerations to take into account.

Specifically, if there is a loan, do not file the notice of commencement before the mortgage is recorded. If a Notice of Commencement is filed prior to the construction mortgage / deed of trust, any mechanics lien filed against property will have priority over the construction lender. It is possible for a property owner to file an NOC before finishing the mortgage process because they mistakenly believe they must file the NOC to get their building permit – but this can have significant consequences for the lender. While the bank ultimately prevailed in a situation in which the NOC and deed of trust were delivered for recording in the same envelope and the NOC was stamped first, they still had to go to court to fight about it, so it’s a good idea to make sure the construction loan is filed first, for priority purposes.

Also, a Nebraska NOC may be limited in the duration of it’s validity – and if no expiration is noted on the NOC itself, it is only valid for one year after its recording. However, the contracting property owner may extend the duration of the NOC by another filing.

In Nebraska, a Notice of Commencement is recorded with the register of deeds in the county in which the property being improved is located.

Unlike many other states with Notice of Commencement filings, the process in Nebraska is accomplished solely by the recording of the document by the property owner – there is no requirement that the Notice of Commencement be posted on the property itself.

When filed by the property owner (or on the property owner’s behalf), the information required to be included on a Notice of Commencement is:

1. The title of Notice of Commencement;
2. The name and address of the contracting owner;
3. The owner’s interest in the real estate;
4. The name and address of the fee simple title holder, if other than the contracting owner;
5. A statement that: after the notice of commencement is recorded, all mechanics liens attach and have priority from the time the notice of commencement is recorded;
6. The notice may state the duration for which the notice is effective, but the duration may not be less than 6 months, and if no duration is specified the duration is 1 year;
7. The notice may limit itself to a particular improvement or portion thereof on the property – but this must be stated with specificity.

Further, the notice must be signed by the contracting property owner.

No. In Nebraska, there is no ability for a property owner to designate any other party to receive notices. There are generally no preliminary notices required prior to filing mechanics lien in Nebraska, so there is no reason that a party designated to receive notice would be worthwhile.

No.

Nebraska law is silent with respect to providing NOC information or copies of the NOC itself to sub-tier participants on the project. This is likely also due to the fact that, unlike many other states with NOCs, Nebraska doesn’t have required preliminary notice requirements for which claimants could rely on the NOC for the required information.

There is, however, a requirement to provide a copy of a notice of terminationof a notice of commencement to all project participants who have requested that they be notifiedof any termination of the notice of commencement, and publishing a notice of the recording of the notice of termination in a newspaper at least once a week for three consecutive weeks.

Yes. A contracting property owner has some control over the duration of a Notice of Commencement in Nebraska. No matter if a shorter time period is listed, a Nebraska NOC is always effective for at least 6 months from recording. And, if no duration is listed on the document it is effective for 1 year from its recording.

A Nebraska Notice of Commencement can be extended, however, by recording a continuation statement referring to the original notice of commencement recording and stating the date to which the notice of commencement’s duration is extended. This extension, however, must be signed by the contracting property owner, and must be recorded prior to the date on which the original NOC’s effectiveness lapses.

No. There is not a requirement that the NOC needs to be notarized in Nebraska.

There is no specific requirement that a Nebraska Notice of Commencement be terminated, the NOC expires pursuant to the effective duration either set forth on the NOC or by statute.

However, there is the ability to terminate a Notice of Commencement in Nebraska (either as a whole or only as to a portion of the property), but the procedure is complex, convoluted, and frustrating. In order to terminate a notice of commencement, the property owner must comply with the following requirements:

1. Record a Notice of Termination of Notice of Commencement Document including the property description and owner information as required by a Notice of Commencement, the recording information of the original Notice of Commencement, and the date upon which the notice is terminated (note, this date cannot be earlier than 30 days from recording the termination).
2. Sending, at least three weeks before the effective date, a copy of the Notice of Termination to all parties who requested to receive it.
3. Publishing notice of the Notice of Termination, including the information required on the notice itself, in a newspaper of general circulation in the county in which the notice was recored at least once a week for three consecutive weeks.
4. 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.

No, there is no requirement for GCs, subcontractors, or suppliers to file a Notice of Commencement in Nebraska. However, Nebraska law specifically provides any party who is entitled to record a mechanics lien  the ability to file a Notice of Commencement if the property owner has not.

There may be advantages to doing so, since filing a Notice of Commencement sets the date on which mechanics liens attach for priority purposes. This means that a potential lien claimant can set the date a future potential lien would attach, so as not to worry about losing priority to another encumbrance that may be filed prior to the filing of the lien itself.

No. Nebraska generally does not require any preliminary notice to be provided prior to the filing of a mechanics lien claim, and the recording of a Notice of Commencement does not change this.

No. The requirements of filing a mechanics lien, and the ability to file a mechanics lien are unaffected by the recording of a Notice of Commencement. However, the Notice of Commencement sets the time for the attachment of any subsequent mechanics lien with respect to priority issues, and can specify a particular portion of the property subject to the improvement instead of the property as a whole.

Yes, if the property owner has not filed a Notice of Commencement. If there is no Notice of Commencement applicable to a certain work of improvement, Nebraska allows any party entitled to file a mechanics lien to file a Notice of Commencement. The notice must contain certain information and comply with recording and service requirements.

If a potential lien claimant files a Notice of Commencement, s/he must also send a copy of the notice to the contracting property owner not later than the day it is recorded. If this requirement is not met, the potential lien claimant is liable to the property owner for damages caused by the failure.

The information required on a Nebraska Notice of Commencement is a little bit different when the notice is filed by a potential lien claimant rather than the contracting property owner. In this case, the notice must include:

1. The title Notice of Commencement, Claimant Recording;
2. A sufficient description of the real estate being or intended to be improved or directly benefited;
3. The name and address of the contracting owner against whom the notice of commencement is effective;
4. The name and address of the claimant recording the notice of commencement;
5. The name and address of the person with whom the claimant contracted with respect to the improvement;
6. A brief description of the services or materials provided, or to be provided, by the claimant for the improvement;
7. A statement that: after the notice of commencement is recorded, all mechanics liens attach and have priority from the time the notice of commencement is recorded.

The notice must be signed by the project participant filing the notice.

Yes. When filed by a project participant other than the contracting property owner, a Nebraska Notice of Commencement expires one year from the date the notice was recorded. Unlike when filed by the property owner, a potential lien claimant has no ability to set the effective duration of a Notice of Commencement.

No. There is not a requirement that the NOC needs to be notarized in Nebraska, it just needs to be signed by the potential lien claimant.

No, the Notice of Commencement filed by a potential lien claimant expires one year after the date on which it was recorded. The ability to terminate a Notice of Commencement in Nebraska is limited to a notice filed by the property owner.

No. Not only is there no specific requirement for Notices of Commencement on public jobs in Nebraska, such a filing is not even contemplated by Nebraska statutes.