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Nebraska Partial Conditional Lien Waiver

Nebraska Partial Conditional Construction Waiver

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

The term "waiver" means a voluntary surrender of a legal right. In this case, the person granting the waiver gives up the right to seek a construction lien for all or part of the amount due on an improvement to real property. This assurance is often enough to encourage the other party to pay the outstanding debt.

As set forth by Neb. Rev. Stat. 52-144(2), a written waiver relinquishes all construction lien rights of the claimant as to the improvement to which the waiver relates unless the waiver is specifically limited to a particular lien right or a particular portion of the services or materials furnished. A waiver of lien rights does not affect any contract rights of the claimant otherwise existing. 52-144(3). Acceptance of a promissory note or other evidence of debt is not a waiver of lien rights unless the note or other instrument expressly so declares. 52-144(4).

Expanding on the statute above, Nebraska law generally recognizes four types of lien waivers. These include partial and final waivers. Each waiver can be conditional or unconditional. A partial waiver covers a progress payment and the waiver only applies to that payment amount, range of dates, or another agreed-upon point. A final waiver covers the entire balance. If the waiver is conditional, it is only valid if the payment is made or clears the bank. Unconditional waivers become effective when they are signed, regardless of payment status.

Thus, a Partial Conditional Lien Waiver is appropriate when a partial or progress payment has been made and the claimant agrees to give up the right to claim a lien for that partial payment amount. Note, however, that a written waiver of construction lien rights signed by a claimant requires no consideration and is valid and binding, whether signed before or after the materials or services were contracted for or furnished. Neb. Rev. Stat. 52-144(1). Ambiguities in a written waiver are construed against the claimant. Id.

A valid waiver identifies the parties, the property where the claimant performed the work or improvement, and any other information necessary for the specific situation. The claimant must sign the document in front of a notary, then submit the completed waiver to the recording office for the county where the property is situated.

This article is provided for informational purposes only and is not legal advice. Please contact an attorney with questions lien waivers or any other issues related to construction liens in Nebraska.

Deeds.com Nebraska Partial Conditional Lien Waiver Forms Have Been Updated as Recently as Thursday November 5, 2020

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Nebraska Partial Conditional Lien Waiver Form