Residential Real Estate Sales Disclosure Statement
76-2,120
Written disclosure statement required, when; contents; delivery;
liability; noncompliance; effect; State Real Estate Commission;
rules and regulations.
(1) For purposes of this section:
(a) Ground lease coupled with improvements shall mean a
lease for a parcel of land on which one to four residential dwelling units have been constructed;
(b) Purchaser shall mean a person who acquires,
attempts to acquire, or succeeds to an interest in land;
(c) Residential real property shall mean real property
which is being used primarily for residential purposes on which
no fewer than one or more than four dwelling units are located;
and
(d) Seller shall mean an owner of real property who
sells or attempts to sell, including lease with option to
purchase, residential real property, whether an individual,
partnership, limited liability company, corporation, or trust. A
sale of a residential dwelling which is subject to a ground lease
coupled with improvements shall be a sale of residential real
property for purposes of this subdivision.
(2) Each seller of residential real property located in
Nebraska shall provide the purchaser with a written disclosure
statement of the real property's condition. The disclosure
statement shall be executed by the seller. The requirements of
this section shall also apply to a sale of improvements which
contain residential real property when the improvements are sold
coupled with a ground lease and to any lease with the option to
purchase residential real property.
(3) The disclosure statement shall include language at
the beginning which states:
(d) That the statement is a disclosure of the real
property's condition as known by the seller on the date of
disclosure;
(e) That the statement is not a warranty of any kind by
the seller or any agent representing a principal in the
transaction;
(f) That the statement should not be accepted as a
substitute for any inspection or warranty that the purchaser may
wish to obtain;
(g) That even though the information provided in the
statement is not a warranty, the purchaser may rely on the
information in deciding whether and on what terms to purchase the
real property;
(h) That any agent representing a principal in the
transaction may provide a copy of the statement to any other
person in connection with any actual or possible sale of the real
property; and
(i) That the information provided in the statement is
the representation of the seller and not the representation of
any agent and that the information is not intended to be part of
any contract between the seller and purchaser.
(4) In addition to the requirements of subsection (3)
of this section, the disclosure statement shall disclose the
condition of the real property and any improvements on the real
property, including:
(a) The condition of all appliances that are included
in the sale and whether the appliances are in working condition;
(f) The condition of all improvements on the real
property and any defects that materially affect the value of the
real property or improvements;
(g) Any hazardous conditions, including substances,
materials, and products on the real property which may be an
environmental hazard;
(h) Any title conditions which affect the real
property, including encroachments, easements, and zoning
restrictions; and
(i) The utility connections and whether they are
public, private, or community.
(5) The disclosure statement shall be completed to the
best of the seller's belief and knowledge as of the date the
disclosure statement is completed and signed by the seller. If
any information required by the disclosure statement is unknown
to the seller, the seller may indicate that fact on the
disclosure statement and the seller shall be in compliance with
this section. On or before the effective date of any contract
which binds the purchaser to purchase the real property, the
seller shall update the information on the disclosure statement
whenever the seller has knowledge that information on the
disclosure statement is no longer accurate.
(6) This section shall not apply to a transfer:
(a) Pursuant to a court order, a foreclosure sale, or a
sale by a trustee under a power of sale in a deed of trust;
(c) To a mortgagee by a mortgagor or successor in
interest or to a beneficiary of a deed of trust by a trustor or
successor in interest;
(d) By a mortgagee, a beneficiary under a deed of
trust, or a seller under a land contract who has acquired the
real property at a sale conducted pursuant to a power of sale
under a deed of trust, at a sale pursuant to a court-ordered
foreclosure, or by a deed in lieu of foreclosure;
(e) By a fiduciary in the course of the administration
of a decedent's estate, guardianship, conservatorship, or trust
except when the fiduciary is also the occupant or was an occupant
of one of the dwelling units being sold;
(g) Made to a spouse or to a person or persons in the
lineal line of consanguinity of one or more of the transferors;
(h) Between spouses resulting from a decree of
dissolution of marriage or a decree of legal separation or from a
property settlement agreement incidental to such a decree;
(i) Pursuant to a merger, consolidation, sale, or
transfer of assets of a corporation pursuant to a plan of merger
or consolidation filed with the Secretary of State;
(l) From a third-party relocation company if the
third-party relocation company has provided the prospective
purchaser a disclosure statement from the most immediate seller
unless the most immediate seller meets one of the exceptions in
this section. If a disclosure statement is required, and if a
third-party relocation company fails to supply a disclosure
statement from its most immediate seller on or before the
effective date of any contract which binds the purchaser to
purchase the real property, the third-party relocation company
shall be liable to the prospective purchaser to the same extent
as a seller under this section.
(7) The disclosure statement and any update to the
statement shall be delivered by the seller or the agent of the
seller to the purchaser or the agent of the purchaser on or
before the effective date of any contract which binds the
purchaser to purchase the real property, and the purchaser shall
acknowledge in writing receipt of the disclosure statement or
update.
(8) The seller shall not be liable under this section
for any error, inaccuracy, or omission of any information in a
disclosure statement if the error, inaccuracy, or omission was
not within the personal knowledge of the seller.
(9) A person representing a principal in the
transaction shall not be liable under this section for any error,
inaccuracy, or omission of any information in a disclosure
statement unless that person has knowledge of the error,
inaccuracy, or omission on the part of the seller.
(10) A person licensed as a salesperson or broker
pursuant to the Nebraska Real Estate License Act shall not be
required to verify the accuracy or completeness of any disclosure
statement prepared pursuant to this section, and the only
obligation of a buyer's agent pursuant to this section is to
assure that a copy of the statement is delivered to the buyer on
or before the effective date of any purchase agreement which
binds the buyer to purchase the property subject to the
disclosure statement. This subsection does not limit the duties
and obligations provided in section 76-2418 or in subsection (9)
of this section with respect to a buyer's agent.
(11) A transfer of an interest in real property subject
to this section may not be invalidated solely because of the
failure of any person to comply with this section.
(12) If a conveyance of real property is not made in
compliance with this section, the purchaser shall have a cause of
action against the seller and may recover the actual damages,
court costs, and reasonable attorney's fees. The cause of action
created by this section shall be in addition to any other cause
of action that the purchaser may have. Any action to recover
damages under the cause of action shall be commenced within one
year after the purchaser takes possession or the conveyance of
the real property, whichever occurs first.
(13) The State Real Estate Commission shall adopt and
promulgate rules and regulations to carry out this section.
Source:
Laws 1994, LB 642, § 1; Laws 2002, LB 863, § 1.
Effective date July 20, 2002.
