3.2 Nebraska Property Disclosures
Key Takeaways
- Neb. Rev. Stat. 76-2,120 requires sellers of residential real property to give buyers a written Seller Property Condition Disclosure Statement
- The disclosure must be delivered on or before the effective date of the purchase contract and updated if information becomes inaccurate
- Nebraska uses a 'seller knowledge' standard - sellers disclose to the best of their knowledge and may mark items 'Unknown'
- A buyer's action for non-compliance must be commenced within one year after possession or conveyance, whichever occurs first
- Federal lead-based paint disclosure applies to homes built before 1978 regardless of any state exemption
Nebraska requires sellers of residential property to give buyers a written property condition disclosure. This makes Nebraska not a pure caveat-emptor ("buyer beware") state for residential transactions.
Mandatory Seller Disclosure (Neb. Rev. Stat. 76-2,120)
Under Neb. Rev. Stat. 76-2,120, each seller of residential real property must provide the buyer a written Seller Property Condition Disclosure Statement, executed by the seller.
Who must comply
| Property type | Disclosure required? |
|---|---|
| Residential (generally 1-4 units) | Yes - mandatory |
| Commercial property | Generally not required |
| Agricultural property | Generally not required |
When to deliver
| Timing | Requirement |
|---|---|
| Deadline | On or before the effective date of any purchase contract |
| Updates | The seller must update if information becomes inaccurate before closing |
| Method | A written statement on the NREC-approved form |
Effective date: The "effective date" is generally when both parties have signed the contract. Deliver the disclosure by then - late delivery can give the buyer rescission rights.
What Must Be Disclosed
The statement covers the property's known condition across multiple categories. The buyer may rely on the information, although the statement is not a warranty.
| Category | Examples |
|---|---|
| Appliances/systems | Whether included appliances and systems are in working condition |
| Hazardous conditions | Substances or materials that might be environmental hazards |
| Title conditions | Easements, encroachments, zoning restrictions |
| Utilities | Public, private, or community water/sewer connections |
| Private transfer fees | Any transfer-fee obligation tied to the property |
| Safety devices | Whether the home has required smoke/carbon-monoxide detectors |
The 'Seller Knowledge' Standard
Nebraska uses a seller knowledge standard - the seller discloses to the best of their actual knowledge and belief.
| Principle | Description |
|---|---|
| Best knowledge/belief | The seller discloses only what they know or believe |
| Not liable for unknown defects | A seller is not liable for genuinely unknown defects |
| Truthfulness required | The seller must be honest about known conditions |
The 'Unknown' option
A seller may mark an item "Unknown" when they genuinely do not know and have no basis to form a belief. Marking "Unknown" effectively shifts the burden to the buyer to investigate that issue. Sellers should not use "Unknown" to dodge a condition they actually know about - a knowingly false disclosure is the core of a buyer's cause of action.
Exemptions from Disclosure
Certain transfers are generally exempt because the transferor lacks ordinary owner-occupant knowledge or the transfer is involuntary:
| Exemption | Reason |
|---|---|
| Foreclosure sales | Lender did not occupy the property |
| Probate/estate sales | Administrator lacks owner knowledge |
| Bankruptcy trustee sales | Trustee lacks owner knowledge |
| Co-owner transfers | Between existing co-owners |
| Family transfers | Between certain family members |
| Divorce transfers | Between divorcing spouses |
| Never-occupied transferors | Limited knowledge of condition |
Lead paint is not exempt: Even when a transfer is exempt from the state disclosure, federal lead-based paint rules still apply to pre-1978 housing (below).
Consequences of Non-Compliance
If a seller fails to comply with 76-2,120 - by not providing a statement or by knowingly making false disclosures - the buyer has a cause of action:
| Remedy | Detail |
|---|---|
| Cause of action | The buyer may sue the seller |
| Actual damages | Recover actual damages proven |
| Court costs | May be recovered |
| Attorney's fees | Reasonable fees may be recovered |
| Time limit | Action must begin within one year after the buyer takes possession or the conveyance, whichever occurs first |
Numeric anchor: The one-year limitations period (from possession or conveyance, whichever is first) is a favorite exam fact. To state a claim, the buyer must show the seller either failed to deliver a statement or made knowingly false disclosures.
Federal Lead-Based Paint Disclosure
For homes built before 1978, federal law (the Residential Lead-Based Paint Hazard Reduction Act) requires:
| Requirement | Detail |
|---|---|
| Disclosure | Known lead-based paint and hazards |
| Pamphlet | The EPA booklet "Protect Your Family From Lead in Your Home" |
| Inspection period | A 10-day opportunity to inspect/test (the buyer may waive it) |
| Form | A signed Lead-Based Paint Disclosure attached to the contract |
Federal overrides state exemptions: Lead-paint disclosure is required regardless of any Nebraska disclosure exemption. This is federal law and applies to nearly all pre-1978 residential sales and leases.
Licensee Disclosure Obligations
Separate from the seller's duty, licensees must disclose known material defects - conditions that could affect value, that a reasonable buyer would want to know, and that are not readily apparent.
| Material fact type | Examples |
|---|---|
| Physical defects | Foundation issues, roof leaks, plumbing failures |
| Environmental hazards | Mold, flooding history, contamination |
| Legal issues | Zoning violations, easements, liens |
| Condition | Non-functioning systems, structural damage |
A licensee cannot hide behind the seller's form: a known material defect must be disclosed even if the seller omitted it. The official NREC Seller Property Condition Disclosure Statement (responses: Yes / No / Unknown / Not Applicable) is available at nrec.nebraska.gov.
Which statement is TRUE about Nebraska's residential property disclosure requirement?
When must the Nebraska Seller Property Condition Disclosure Statement be delivered to the buyer?
What is the time limit for a buyer to file an action for non-compliance with Nebraska's disclosure statute?