Key Takeaways
- Nebraska law REQUIRES sellers of residential property (1-4 units) to provide a Seller Property Condition Disclosure Statement
- The disclosure must be provided to the buyer on or before the effective date of the purchase contract
- Sellers must update the disclosure whenever they learn information is no longer accurate
- Lead-based paint disclosure IS required for pre-1978 homes (federal law)
- Sellers are only liable for information within their personal knowledge
Nebraska Property Disclosures
Nebraska requires sellers of residential property to provide a property disclosure statement to buyers.
Mandatory Seller Disclosure
Under Neb. Rev. Stat. Section 76-2,120, Nebraska requires a Seller Property Condition Disclosure Statement.
Who Must Comply
| Property Type | Disclosure Required? |
|---|---|
| Residential (1-4 units) | YES - Mandatory |
| Commercial property | Generally not required |
| Agricultural property | Generally not required |
Key Point: Nebraska is NOT a "caveat emptor" state for residential property. Sellers must provide disclosures.
When to Deliver
The disclosure must be provided to the buyer:
| Timing | Requirement |
|---|---|
| Deadline | On or before the effective date of any contract |
| Updates | Seller must update when information becomes inaccurate |
| Method | Written statement on approved form |
Important: The "effective date" is typically when both parties sign the contract.
What Must Be Disclosed
The Seller Property Condition Disclosure Statement must include:
Required Disclosure Items
| Category | Examples |
|---|---|
| Appliances | Condition of all appliances included in sale, whether in working condition |
| Hazardous conditions | Substances, materials, products that might be environmental hazards |
| Title conditions | Easements, encroachments, zoning restrictions |
| Utility connections | Public, private, or community utilities |
| Private transfer fees | Any transfer fee obligations |
| Carbon monoxide detectors | Whether home has required CO detectors |
Seller Knowledge Standard
Nebraska uses a "seller knowledge" standard:
| Principle | Description |
|---|---|
| Best belief and knowledge | Seller only discloses what they know or believe |
| Not liable for unknown defects | Seller not liable for errors outside their knowledge |
| Truthfulness required | Must be honest about known conditions |
"Unknown" Option
Sellers may mark items as "Unknown" if they:
- Genuinely don't know the answer
- Have no basis to form a belief
Note: Marking something as "unknown" shifts the burden to the buyer to investigate that issue.
Exemptions from Disclosure
The following transfers are generally exempt:
| Exemption | Description |
|---|---|
| Foreclosure sales | Sales by lenders |
| Probate/estate sales | Transfers by estate administrators |
| Bankruptcy trustee sales | Sales by trustees in bankruptcy |
| Co-owner transfers | Transfers between co-owners |
| Family transfers | Transfers between family members |
| Divorce transfers | Transfers between divorcing spouses |
| Sellers who never lived there | May have limited knowledge |
Consequences for Non-Compliance
If seller fails to comply with disclosure requirements:
| Consequence | Description |
|---|---|
| Cause of action | Buyer has legal recourse against seller |
| Damages | Can recover actual damages |
| Court costs | May recover court costs |
| Attorney fees | May recover reasonable attorney fees |
| Time limit | Action must be filed within 1 year of possession or conveyance |
Warning: Non-compliance can result in significant liability for the seller.
Federal Lead-Based Paint Disclosure
For homes built before 1978, federal law requires:
| Requirement | Details |
|---|---|
| Disclosure | Known lead-based paint hazards |
| Pamphlet | EPA pamphlet "Protect Your Family From Lead" |
| Inspection period | Buyer has 10 days to inspect (waivable) |
| Form | Lead-Based Paint Disclosure form |
Important: Lead-based paint disclosure is REQUIRED regardless of state exemptions. This is federal law.
Licensee Disclosure Obligations
While sellers must provide disclosures, licensees also have professional obligations:
Material Defects
Licensees must disclose known material defects that:
- Could affect the property's value
- A reasonable person would want to know
- Are not readily apparent
What IS a Material Fact?
| Material Facts | Examples |
|---|---|
| Physical defects | Foundation issues, roof leaks, plumbing problems |
| Environmental hazards | Mold, flooding history, contamination |
| Legal issues | Zoning violations, easements, liens |
| Property condition | Systems not functioning, structural damage |
Nebraska Real Estate Commission Form
NREC provides the official Seller Property Condition Disclosure Statement:
| Feature | Details |
|---|---|
| Provider | Nebraska Real Estate Commission |
| Current version | Available at nrec.nebraska.gov |
| Format | Covers multiple property conditions |
| Responses | Yes, No, Unknown, Not Applicable |
Which statement is TRUE about Nebraska's property disclosure requirements?
When must the Nebraska Seller Property Condition Disclosure Statement be delivered to the buyer?
What is the time limit for a buyer to file a legal action for non-compliance with Nebraska's disclosure requirements?