Nebraska statute § 25-229 is crucial for anyone involved in real estate transactions in the state. This statute governs the timeframe within which an action must be taken against a real estate licensee—a licensed broker or salesperson—for damages arising from their real estate brokerage services.
Whether you're a buyer, seller, or another party in a real estate transaction, it's essential to understand this law, especially if you believe a real estate professional's actions or omissions have caused you harm. Here’s a breakdown of § 25-229 and what it means for you.
Key Provisions of § 25-229
- Who Does the Statute Apply To?
- The statute applies specifically to real estate licensees, meaning any broker or salesperson licensed under the Nebraska Real Estate License Act. This includes individuals or entities providing services related to real estate transactions, such as sales, leasing, and property management.
- Timeframe to File a Claim (Subsection 2)
- According to the statute, a claim must be filed within two years from one of the following events:
- Completion or closure of the transaction: The finalization of the sale, lease, or other real estate transaction.
- Termination of an agency agreement: If the contractual relationship between the client and the licensee ends.
- Termination or expiration of an unconsummated transaction: If a transaction doesn’t close for any reason, or the agreed-upon contract expires.
- This two-year period cannot be shortened by any agreement between parties and does not apply to disciplinary actions initiated by the State Real Estate Commission.
- Discovery Rule Exception (Subsection 3)
- If the cause of action is not discovered within the two-year timeframe and could not have reasonably been discovered, the statute allows for the action to be filed within one year from the date of discovery. However, this exception comes with a critical limitation:
- No action may be filed more than ten years after the real estate services that gave rise to the claim.
Practical Implications for Clients and Licensees
- For clients: If you believe a real estate licensee has made a serious error or omission during a transaction, it’s essential to act quickly. The clock starts ticking from the moment the transaction closes, the agency agreement is terminated, or the unconsummated transaction expires. If you don’t discover the issue immediately, you still have a limited time to file a claim after discovery—so long as the discovery happens within ten years of the event.
- For real estate professionals: Brokers and salespeople must be aware of their liability timeline. Even after completing a transaction or terminating an agency agreement, the possibility of a claim being filed can linger for up to two years or, in rare cases, even ten years. Proper documentation and communication are essential to protect against future claims.
Conclusion
Nebraska’s § 25-229 provides clear guidelines on when you can file a claim against a real estate licensee for damages related to real estate brokerage services. With a two-year statute of limitations, exceptions for delayed discovery, and a ten-year absolute bar on filing claims, this statute ensures fairness for both clients and real estate professionals. If you're considering legal action, consult an experienced attorney to ensure your case is filed within the appropriate timeframe.
