You know the feeling, a contractor files a lien against the property, the owner is frustrated,and tells you to get the lien removed. Easier said than done. Here are two steps that can be taken to alleviate the owner’s frustration and expedite the fight over the lien.
Bond Over the Lien
Neb. Rev. Stat. § 52-142 provides that any person having an interest in the real estate may release the lien from the real estate by depositing a bond with the district court of the county in which the lien is recorded. The bond must be 115% of the lien amount. Bonding over a lien may alleviate any concerns a bank has in releasing funds to the project while the lien is recorded.
Demand to Institute Judicial Proceedings
Neb. Rev. Stat. § 52-140 provides that any person having an interest in the real estate may give the lien filer written demand to institute a judicial proceeding within 30 days. If the lien filer does not institute judicial proceedings or record an affidavit that the total contract price is not yet due under the contract, the lien will lapse within 30 days. If the lien filer fails to institute judicial proceedings or file an affidavit within the 30 days, the lien will be discharged.
These are two steps that can be taken to minimize the impact of a construction lien. But, you need to have an interest in the property to take this action.