Construction Liens

[Zane Abner]

Good morning,

I am new to real estate investing and have heard/read some stories about "shady" contractors placing liens on properties for no reason or because they had a disagreement with the owner etc. I understand this type of situation can mostly be avoided through proper vetting of the contractor but not 100% of the time. I am interested in finding more information in regards to constructions liens in Nebraska. If anyone has any basic information or links it would be much appreciated as I will continue my search also. Thanks in advance.

[Matthew Kreitzer]

      There are a number of legal protections available to people who fall prey to fraudulent construction liens. Among those remedies are both civil and criminal sanctions that may exist in your particular jurisdiction. As I am not licensed to practice in Nebraska, I cannot tell you what those remedies may be in your state. Generally speaking, in my state, filing a warrantless lien could amount to Fraud, Obstruction of Justice, and a number of other crimes. Investors in my state could go to the local magistrate and report the conduct.

      Although, the criminal route may not result in immediate action. Many police officers are unwilling to get involved in what they perceive to be "strictly civil disputes", which in my opinion is a faulty way of looking at things, but hey, I'm not the prosecutor. 

      As such, many investors may choose to turn to the civil courts. There are some actions someone may take in court to either void the lien or counterclaim against the construction company.

Please keep in mind, these remedies may or may not be available in your particular jurisdiction. For more information, you should seek out a local, experienced Commercial Litigator to discuss your options.

Disclaimer: The above is not intended to be legal advice. For those people in my state; this post may be seen as legal advertising. I do not agree to represent anyone by virtue of posting this *educational* material. No one should rely on or act on the information provided in this post. Consult a local, licensed attorney for all legal matters you are involved in.