In Nebraska, real estate law is heavily influenced by statutes of limitations that govern when property-related claims can be brought before the court. One of the key statutes in this area is Neb. Rev. Stat. § 25-202, which sets forth the time limits for filing actions related to the recovery of title, possession of real estate, or the foreclosure of mortgages or deeds of trust.
This statute imposes a 10-year limit for individuals and entities to bring certain types of real estate claims. However, the statute also contains several critical exceptions and conditions that can affect the timeline for filing a lawsuit, especially when it comes to municipal corporations, encumbrancers, and subsequent purchasers. For property owners, lenders, and those with an interest in real estate, understanding how this statute works is crucial to protecting their rights and interests.
In this article, we’ll provide an in-depth analysis of Neb. Rev. Stat. § 25-202, exploring how the statute applies to different types of real estate actions, the exceptions to the 10-year rule, and the key cases that have helped define the scope of this important law.
Neb. Rev. Stat. § 25-202 establishes a 10-year statute of limitations for actions related to the recovery of title or possession of real estate and for the foreclosure of mortgages or deeds of trust. Specifically, the statute states that these actions can only be brought within 10 years after the cause of action accrues.
This 10-year limitation applies to a wide variety of real estate claims, including:
It’s important to note that while the 10-year statute of limitations applies to most real estate actions, the clock doesn’t always start running at the same time for every case. When the cause of action accrues—meaning, when the right to file a lawsuit arises—can depend on several factors, such as the terms of the mortgage, the nature of the property interest, and any actions taken by the parties involved.
While the 10-year statute of limitations in Neb. Rev. Stat. § 25-202 is a general rule for real estate actions, the statute contains some notable exceptions, especially for governmental entities and public lands.
Under the statute, the 10-year limitation does not apply to actions brought by any county, city, town, village, other municipal corporation, public power and irrigation district, public power district, public irrigation district, or natural resources district.
This means that these entities can bring actions to recover the title or possession of public property, such as roads, streets, alleys, or other public grounds, without being bound by the 10-year limitation. This exception reflects the public policy interest in protecting public property and ensuring that municipalities can reclaim land that is needed for public use.
The statute also contains specific provisions that apply to subsequent purchasers and encumbrancers for value—that is, individuals or entities who acquire an interest in real estate after a prior encumbrance, such as a mortgage, has been recorded.
For these parties, the 10-year statute of limitations begins running on the last date of maturity of the debt or other obligation secured by the mortgage or deed of trust, as stated in the filed records. If no maturity date is stated, the cause of action for foreclosure accrues no later than 30 years after the mortgage or deed of trust was recorded.
In some cases, the statute allows for an extension of this 10-year period if the mortgage creditor files an affidavit stating that the mortgage is still valid and unpaid. The affidavit must be filed before the statute of limitations expires, and once filed, the 10-year limitation starts again from the date the affidavit is recorded. This provision ensures that long-term mortgages and other encumbrances are not inadvertently extinguished simply due to the passage of time.
Determining when a cause of action accrues is one of the most critical aspects of applying Neb. Rev. Stat. § 25-202. The statute itself provides some guidance on when the clock starts ticking for foreclosure actions involving mortgages or deeds of trust:
In the context of real estate title and possession disputes, the cause of action typically accrues when a party takes adverse possession of the property or otherwise acts in a way that interferes with the rightful owner’s ability to use or possess the land.
For example, in cases of adverse possession, a party claiming title to land must prove that they have been in actual, continuous, exclusive, notorious, and adverse possession of the land for the full 10-year period. The clock starts when the adverse possessor takes control of the land with the intent to claim it as their own, and it runs for 10 years unless the rightful owner takes legal action to reclaim the property.
Several key Nebraska cases have interpreted and applied Neb. Rev. Stat. § 25-202 in various real estate disputes. These cases provide valuable insights into how courts determine when a cause of action accrues, how the statute of limitations is applied, and what exceptions may exist.
In this case, the Nebraska Supreme Court held that an action to recover possession of real property from a tenant who remains in possession without the landlord's consent after a lease has expired is subject to the 10-year statute of limitations under Neb. Rev. Stat. § 25-202. This case clarified that the 10-year limitation applies to actions for possession, even when the claim involves a tenant who overstays their lease.
This case is a key example of how Nebraska courts apply the doctrine of adverse possession under Neb. Rev. Stat. § 25-202. The court held that to establish title by adverse possession, the claimant must prove by a preponderance of the evidence that they have been in actual, continuous, exclusive, notorious, and adverse possession under a claim of ownership for the full 10-year period.
In this case, the Nebraska Supreme Court held that the 10-year statute of limitations under Neb. Rev. Stat. § 25-202 applies in actions to recover water rights, which are treated as real property interests under Nebraska law. The court found that the plaintiff had lost their water rights because they had not used them for more than 10 years.
The 10-year statute of limitations is particularly important in the context of foreclosure actions, where a lender seeks to recover the unpaid balance of a loan by forcing the sale of real estate secured by a mortgage or deed of trust. Under Nebraska law, the statute of limitations for foreclosure actions begins to run on the maturity date of the debt, or 30 years after the mortgage was executed if no maturity date is listed.
This rule helps ensure that foreclosure actions are brought within a reasonable timeframe, preventing lenders from sitting on their rights indefinitely. However, as noted earlier, the statute allows for an extension of this 10-year period if the mortgage creditor files an affidavit stating that the mortgage is still unpaid. Once the affidavit is filed, the lender has another 10 years to bring a foreclosure action.
For borrowers, understanding this aspect of the law is critical because it affects how long they may be vulnerable to foreclosure. Borrowers who believe that a mortgage has expired due to the passage of time should carefully check for any affidavits that may have been filed by the lender, as this could extend the time in which foreclosure can occur.
Another common type of real estate dispute affected by Neb. Rev. Stat. § 25-202 is adverse possession. Adverse possession occurs when someone occupies another person’s land for a continuous period of time and claims ownership of it, even though they do not hold legal title.
Under Nebraska law, a claim for adverse possession can only succeed if the claimant has been in actual, continuous, exclusive, notorious, and adverse possession of the land for the full 10-year period. This means that the claimant must occupy the land in a way that is open and obvious, and they must act as though they are the rightful owner.
For property owners facing a claim of adverse possession, it’s essential to take action before the 10-year statute of limitations expires. Once the 10-year period has passed, the adverse possessor may be able to claim legal title to the land, even if they did not have the owner’s permission to occupy it.
Nebraska’s statute of limitations for real estate actions is a critical aspect of property law that affects a wide range of disputes, from foreclosure actions to adverse possession claims. Under Neb. Rev. Stat. § 25-202, most real estate actions must be brought within 10 years of the cause of action accruing, though there are important exceptions for governmental entities and extensions available to mortgage creditors who file affidavits.
At Ironclad Injury Law, we understand the complexities of Nebraska’s real estate laws and are committed to helping clients protect their property rights. Whether you’re facing an adverse possession claim, a foreclosure action, or a title dispute, our experienced attorneys can help you navigate the legal process and achieve the best possible outcome.
If you have questions about your real estate rights under Nebraska law, contact Ironclad Injury Law today for a free consultation. Let us help you understand your legal options and protect your property from adverse claims.
