RELEASE / DISCHARGE OF CONSTRUCTION LIEN

(Nebraska)

FOR RECORDING WITH THE REGISTER OF DEEDS
[________________________________] County, Nebraska

PART ONE: FULL RELEASE AND DISCHARGE OF CONSTRUCTION LIEN

(Pursuant to Neb. Rev. Stat. § 52-154(1)(a))

1. Original Lien Recording Information

2. Property Information

(If legal description is lengthy, state "See Exhibit A attached hereto and incorporated by reference.")

3. Parties

4. Original Lien Claim Details

5. Release Statement

The undersigned, [________________________________] ("Record Claimant"), being the party who recorded the construction lien described above in the office of the Register of Deeds of [________________________________] County, Nebraska, hereby states that the lien is released and discharges, cancels, and relinquishes all right, title, interest, and claim under said lien against the above-described real property and all improvements thereon.

This release is made pursuant to Neb. Rev. Stat. § 52-154(1)(a), which provides that a construction lien may be discharged of record by "recording a signed statement of the record claimant stating that the lien is released."

Reason for Release:

☐ Full payment has been received in the amount of $[________________________________], representing complete satisfaction of all sums claimed under the lien.

☐ Settlement and compromise have been reached between the parties, with the Record Claimant accepting $[________________________________] in full and final satisfaction of all claims.

☐ The underlying claim has been resolved by final judgment or decree entered on [__/__/____] in Case No. [________________________________], in the District Court of [________________________________] County, Nebraska.

☐ The lien has expired under § 52-140, the two-year duration period having elapsed without continuation by judicial proceedings.

☐ Other: [________________________________]

Effective Date of Release: [__/__/____]

The Record Claimant warrants that no assignment, transfer, or encumbrance of the lien or the underlying claim has been made, and that the Record Claimant has full authority to execute this release.

The Register of Deeds of [________________________________] County, Nebraska, is hereby authorized and directed to discharge the above-referenced construction lien of record.

6. Claimant Execution

Signature: ______________________________

Printed Name: [________________________________]

Title/Capacity: [________________________________]

Date: [__/__/____]

If Claimant is an Entity:

Entity Name: [________________________________]

By: ______________________________ Its: [________________________________]

7. Notarization

STATE OF NEBRASKA
County of [________________________________]

On this [____] day of [________________________________], 20[____], before me, the undersigned Notary Public, personally appeared [________________________________], known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal.

Notary Public: ______________________________

Printed Name: [________________________________]

My Commission Expires: [__/__/____]

(NOTARIAL SEAL)

PART TWO: PARTIAL RELEASE / AMENDMENT OF CONSTRUCTION LIEN

(Pursuant to Neb. Rev. Stat. § 52-154(2))

1. Partial Release Statement

The undersigned, [________________________________] ("Record Claimant"), being the party who recorded the construction lien in the office of the Register of Deeds of [________________________________] County, Nebraska, as Instrument No. [________________________________], on [__/__/____], in the original amount of $[________________________________], hereby partially releases said lien by recording this amendment as follows:

Partial Payment Received: $[________________________________]

Remaining Lien Balance: $[________________________________]

Scope of Partial Release (per § 52-154(2)):

☐ Reduction in Amount Only. The Record Claimant reduces the amount of the lien claimed in the notice of lien from $[________________________________] to $[________________________________]. The lien continues to encumber all real estate described in the notice of commencement.

☐ Limitation to Specific Real Estate. The Record Claimant limits the notice of lien to the following portion of the real estate described in the notice of commencement, releasing all other parcels:

Limited Parcel Legal Description: [________________________________]

Limited Parcel Address: [________________________________]

☐ Combination. Both a reduction in amount and limitation to specific real estate as described above.

Statutory Basis. This partial release is filed pursuant to Neb. Rev. Stat. § 52-154(2), which provides that "the lien claimant of record by partial release may reduce the amount of the lien claimed in the notice of lien or limit the notice of lien to a portion of the real estate described in the notice of commencement by recording an amendment to his or her lien showing the reduction in amount or limited portion of the real estate against which a lien is claimed."

Remaining Lien. The Record Claimant expressly reserves all rights under the construction lien as to the unreleased amount of $[________________________________] and any unreleased real estate. This partial release/amendment does not constitute a waiver of any rights, claims, or remedies with respect to the remaining balance.

This partial release/amendment is effective as of [__/__/____].

2. Partial Release Execution

Signature: ______________________________

Printed Name: [________________________________]

Title/Capacity: [________________________________]

Date: [__/__/____]

(Notarization required — use same notarization form as Part One, Section 7.)

PART THREE: DISCHARGE BY SUBSTITUTE COLLATERAL / SURETY BOND

Method A: Cash Deposit with District Court Clerk

(Pursuant to Neb. Rev. Stat. §§ 52-151, 52-154(1)(d))

CERTIFICATE OF DEPOSIT OF SUBSTITUTE COLLATERAL

The undersigned, Clerk of the District Court of [________________________________] County, Nebraska, hereby certifies that:

1. [________________________________] ("Depositor") has deposited with this Court the sum of $[________________________________] as substitute collateral for the construction lien recorded by [________________________________] ("Record Claimant") against the real property described as: [________________________________].

2. The construction lien was recorded on [__/__/____] as Instrument No. [________________________________] in the office of the Register of Deeds of [________________________________] County, Nebraska, in the amount of $[________________________________].

3. The deposit is made pursuant to Neb. Rev. Stat. § 52-151, and upon recording of this certificate, the construction lien against the real property shall be discharged of record pursuant to § 52-154(1)(d).

4. The deposited funds shall be held pending final adjudication of the lien claim or written agreement of the parties.

______________________________
Clerk of the District Court
[________________________________] County, Nebraska

Date: [__/__/____]

Method B: Surety Bond to Prevent Lien Attachment

(Pursuant to Neb. Rev. Stat. § 52-141)

NOTICE OF SURETY BOND — DISCHARGE OF CONSTRUCTION LIEN

NOTICE IS HEREBY GIVEN that a surety bond has been filed to discharge the construction lien described below:

Bond Information:

Statutory Requirements — § 52-141:

☐ The bond is issued by a surety company authorized to do business in Nebraska.

☐ The bond penal sum is equal to at least 115% of the total amount claimed in the lien (i.e., the total lien amount plus fifteen percent), specifically $[________________________________].

☐ The bond is conditioned upon payment of any amount finally determined to be due to the lien claimant.

Note on Contract-Based Bonds: Under § 52-141, for contracts of $100,000 or less, the bond penal sum is 50% of the contract price. For contracts over $100,000, the bond penal sum is 40% of the contract price. These apply to pre-construction payment bonds. For discharge of a specific recorded lien, a bond of 115% of the specific lien claim is typical practice.

PART FOUR: DEMAND FOR DISCHARGE OF CONSTRUCTION LIEN

(Letter from Property Owner to Lien Claimant)

Date: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

To:
[________________________________]
[________________________________]
[________________________________]

Re: Demand for Discharge of Construction Lien
Property: [________________________________]
County: [________________________________], Nebraska
Instrument No.: [________________________________]
Recording Date: [__/__/____]

Dear [________________________________]:

I am the owner (or authorized representative of the owner) of the above-referenced property. A construction lien was recorded against this property by you or your company on [__/__/____] as Instrument No. [________________________________] in the office of the Register of Deeds of [________________________________] County, Nebraska.

I hereby demand that you discharge this lien for the following reason(s):

☐ Full payment has been made. The total amount of $[________________________________] has been paid in full on [__/__/____], satisfying all obligations underlying the lien claim. Proof of payment is attached hereto as Exhibit [____].

☐ The lien has expired. Under Neb. Rev. Stat. § 52-140, a construction lien remains enforceable for only two (2) years after recording. The lien was recorded on [__/__/____], and the two-year period expired on [__/__/____]. No affidavit was filed extending the lien under § 52-140.

☐ The lien was improperly filed. The lien fails to comply with statutory requirements because: [________________________________]

☐ Other: [________________________________]

Legal Consequences of Failure to Discharge:

Under Neb. Rev. Stat. §§ 52-123 and 52-124, a contractor or subcontractor who receives payment for labor, services, or materials and fails to apply such payment to lawful claims, while continuing to assert a construction lien, commits a violation. Specifically:

• § 52-123: It is unlawful for any contractor or subcontractor to fail to apply payments received for labor or materials to the claims arising from such work, while retaining a lien.
• § 52-124: Failure to apply payments and discharge the lien constitutes prima facie evidence of intent to deprive or defraud and is a Class II misdemeanor (up to 6 months imprisonment and/or $1,000 fine).

Demand. You are hereby demanded to execute and record a signed statement releasing the lien, pursuant to Neb. Rev. Stat. § 52-154(1)(a), with the Register of Deeds of [________________________________] County, Nebraska, within ten (10) days of receipt of this demand.

If you fail to discharge the lien within the specified period, I will pursue all available legal remedies, including but not limited to:

1. Filing a motion with the District Court to compel discharge;
2. Filing substitute collateral under § 52-151 to discharge the lien of record;
3. Reporting the failure to discharge as a potential Class II misdemeanor under § 52-124; and
4. Recovery of all damages, attorney's fees, and costs.

Sincerely,

______________________________
[________________________________]
[________________________________]
[________________________________]

PART FIVE: MOTION TO DISCHARGE CONSTRUCTION LIEN

(Filed in Nebraska District Court)

Caption

IN THE DISTRICT COURT OF [________________________________] COUNTY, NEBRASKA

Motion

Plaintiff/Petitioner, [________________________________], by and through undersigned counsel, respectfully moves this Court for an order discharging the construction lien recorded against Petitioner's property and states as follows:

I. PARTIES AND PROPERTY

1. Petitioner is the owner of real property located at [________________________________], in [________________________________] County, Nebraska, legally described as: [________________________________].

2. Respondent, [________________________________], is the Record Claimant who recorded a construction lien against the Property.

II. THE LIEN

3. On [__/__/____], Respondent caused a construction lien to be recorded in the office of the Register of Deeds of [________________________________] County, Nebraska, as Instrument No. [________________________________], in the amount of $[________________________________].

4. The lien claims amounts due for labor, services, or materials furnished under a real estate improvement contract for the Property.

III. GROUNDS FOR DISCHARGE

5. Petitioner is entitled to discharge of the construction lien on the following grounds:

☐ Full Payment — Failure to Release (§ 52-154(1)(a)). The indebtedness secured by the lien has been paid and satisfied in full on [__/__/____]. Despite payment, Respondent has failed and refused to record a signed statement releasing the lien as required by § 52-154(1)(a).

☐ Expiration of Lien Duration (§ 52-140). The two-year duration period under § 52-140 has expired. The lien was recorded on [__/__/____], and Respondent failed to file an affidavit extending the lien or commence judicial proceedings within two years.

☐ Substitute Collateral Deposited (§ 52-151 / § 52-154(1)(d)). Petitioner has deposited substitute collateral in the amount of $[________________________________] with the Clerk of the District Court, and is entitled to discharge of the lien of record.

☐ Final Judgment (§ 52-154(1)(c)). A final judgment or decree has been entered providing for discharge. See attached certified copy.

☐ Defective Lien. The lien fails to comply with the requirements of the Nebraska Construction Lien Act because: [________________________________].

☐ Criminal Violation (§§ 52-123, 52-124). Respondent received payment of $[________________________________] on [__/__/____] and failed to apply such payment and discharge the lien, constituting prima facie evidence of intent to deprive or defraud.

IV. PRIOR DEMAND

6. On [__/__/____], Petitioner served a written demand upon Respondent via certified mail, return receipt requested, requiring discharge of the lien. A copy of the demand and proof of delivery are attached as Exhibit [____].

7. Respondent has failed to discharge the lien as demanded.

V. RELIEF REQUESTED

WHEREFORE, Petitioner respectfully requests that this Court:

a. Enter an order declaring the construction lien discharged, void, and unenforceable;

b. Direct the Register of Deeds of [________________________________] County, Nebraska, to discharge the lien of record;

c. Award Petitioner actual damages caused by the wrongful continuation of the lien;

d. Award Petitioner reasonable attorney's fees and costs of this action;

e. Refer the matter to the County Attorney for consideration of criminal charges under § 52-124, if applicable; and

f. Grant such other and further relief as the Court deems just and proper.

DATED: [__/__/____]

______________________________
[________________________________]
Attorney for Petitioner
[________________________________]
[________________________________]
Nebraska Bar No. [________________________________]

Verification

STATE OF NEBRASKA
County of [________________________________]

I, [________________________________], being first duly sworn, state that I am the Petitioner in the foregoing Motion, that I have read the same, and that the facts stated therein are true and correct to the best of my knowledge, information, and belief.

______________________________
[________________________________]

Subscribed and sworn to before me on [__/__/____].

Notary Public: ______________________________
My Commission Expires: [__/__/____]

PART SIX: RECORDING INSTRUCTIONS AND STATUTORY REFERENCE

Nebraska Recording Requirements

Register of Deeds Contact — Major Nebraska Counties

Statutory Deadlines and Penalties — Nebraska

Practitioner Notes — Nebraska

1. Four Statutory Methods of Discharge. Section 52-154 provides exactly four ways to discharge a construction lien of record: (a) claimant's signed release statement, (b) failure to file continuation affidavit within the 2-year duration, (c) certified copy of final court judgment, or (d) certificate showing deposit of substitute collateral. There is no other statutory mechanism.

2. Criminal Penalty Is Unique. Nebraska is one of the few states that imposes a criminal penalty for failure to discharge a construction lien after payment. Under § 52-124, failure to apply payments and discharge the lien is a Class II misdemeanor, and the failure itself is "prima facie evidence of intent to deprive or defraud." This gives the demand letter significant leverage.

3. 10-Day Service Requirement. Under § 52-137, the lien claimant must serve a copy of the recorded lien on the property owner within 10 days after recording. Failure to do so may affect the lien's enforceability and provides a ground for discharge.

4. Two-Year Duration with Extension. The lien expires after 2 years from recording under § 52-140, unless the claimant files an affidavit that the total contract price is not yet due, or commences judicial proceedings. Once expired, the lien is discharged by operation of law under § 52-154(1)(b).

5. Notice of Commencement. Nebraska's Construction Lien Act utilizes a "notice of commencement" system. The notice of commencement, if filed, defines the real estate subject to liens. When releasing a lien, reference the notice of commencement if one was filed.

6. Partial Release by Amendment. Section 52-154(2) uniquely allows partial releases by recording an "amendment" to the lien. This is more formal than many states' partial release procedures and specifically allows both reduction of amount and limitation to specific parcels within the property described in the notice of commencement.

7. Substitute Collateral Procedure. Under § 52-151, the deposit of substitute collateral with the district court clerk provides an alternative to a surety bond. The certificate of deposit is then recorded with the Register of Deeds to discharge the lien of record. This approach may be simpler and faster than obtaining a surety bond.

8. Recording Location. Construction lien releases are recorded with the county Register of Deeds, the same office where the original lien was recorded. This is the standard recording office in Nebraska (not the Clerk of Court).

This template is provided by ezel.ai for informational purposes only. It does not constitute legal advice. All construction lien releases should be reviewed by a licensed Nebraska attorney before recording. Nebraska law may change; verify all statutory citations before use.