§ 77-1902 — Tax sale certificate; tax deed; right of holder to foreclosure; action in district court; limitation period; vacant and abandoned real estate

Nebraska § 77-1902

• Jurisdiction: Nebraska
• Ch. 77: Revenue and Taxation

Text

(1) When land has been sold for delinquent taxes and a tax sale certificate or tax deed has been issued, the holder of such tax sale certificate or tax deed may, instead of demanding a deed or, if a deed has been issued, by surrendering the same in court, proceed in the district court of the county in which the land is situated to foreclose the lien for taxes represented by the tax sale certificate or tax deed and all subsequent tax liens thereon, excluding any lien on real estate for special assessments levied by any sanitary and improvement district which special assessments have not been previously offered for sale by the county treasurer, in the same manner and with like effect as in the foreclosure of a real estate mortgage, except as otherwise specifically provided by sections 77-1903 to 77-1917 .
(2) Such action shall be brought within whichever of the following two timeframes is applicable:
(a) For real estate determined to be vacant and abandoned pursuant to subsection (3) of this section, the action shall be brought within nine months after the expiration of two years from the date of sale of the real estate for taxes or special assessments; or
(b) For any other real estate, the action shall be brought within nine months after the expiration of three years from the date of sale of the real estate for taxes or special assessments.
(3)(a) For purposes of this section, real estate may be considered vacant and abandoned if:
(i) The holder of the tax sale certificate or tax deed is a land bank as defined in section 18-3403 ; and
(ii) Such property substantially meets more than two of the following criteria:
(A) The property is not occupied by the owner or any lessee or licensee of the owner;
(B) Utility service to the property, including, but not limited to, gas, electric, or water service, has been disconnected or delinquent for over one year;
(C) A building on the property has been deemed unfit for human habitation, occupancy, or use by local housing officials;
(D) A building on the property is open and unprotected and in reasonable danger of significant damage resulting from exposure to the elements or vandalism;
(E) A building on the property is unsecure due to multiple windows and doors being boarded up or closed off, smashed through, broken off or unhinged, or continuously unlocked;
(F) The property has been stripped of copper or other materials or interior fixtures to the property have been removed;
(G) There have not been any recent efforts made to restore the property to productive use;
(H) There is a presence of vermin, uncut vegetation, or debris accumulation on the property;
(I) There have been past actions by the applicable municipality or county to maintain the grounds or a building on the property;
(J) The property has been out of compliance with orders of local housing officials; or
(K) Any other condition or circumstance reasonably indicating that the property is vacant and abandoned.
(b) The holder of the tax sale certificate or tax deed shall determine whether or not real estate is vacant and abandoned two years after the date of the sale of such real estate for taxes or special assessments.
(c) If the real estate is registered as vacant and abandoned pursuant to a vacant property registration ordinance adopted by a municipality, it shall be conclusive proof that such real estate is vacant and abandoned. If the real estate is not registered as vacant and abandoned pursuant to such an ordinance, the holder of the tax sale certificate or tax deed shall not be obligated to proceed under subdivision (2)(a) of this section, but may instead choose to proceed under subdivision (2)(b) of this section, and no deed subsequently issued to such holder shall be deemed invalid due to noncompliance with subdivision (2)(a) of this section. No action taken by a holder of a tax sale certificate or tax deed under subdivision (2)(a) of this section shall prohibit a subsequent action under subdivision (2)(b) of this section on the same real estate should it be determined that such real estate is not vacant and abandoned.
(d) If the holder of the tax sale certificate or tax deed determines real estate to be vacant and abandoned pursuant to this subsection, the holder shall submit an affidavit to the county treasurer affirming that the real estate is vacant and abandoned.

Legislative History

Source: Laws 1943, c. 176, § 2, p. 615; R.S.1943, § 77-1902; Laws 1975, LB 78, § 2; Laws 1987, LB 215, § 3; Laws 1996, LB 1321, § 4; Laws 2011, LB423, § 2; Laws 2013, LB341, § 18; Laws 2025, LB650, § 34. Operative Date: May 7, 2025 Annotations: 1. Time limits 2. Miscellaneous 1. Time limits A foreclosure action brought under this section must be brought within 6 months after the expiration of 3 years from the date of sale of any real estate for taxes. County of Seward v. Andelt, 251 Neb. 713, 559 N.W.2d 465 (1997). Under this section, "time for redemption" is the three years immediately following a delinquent tax sale, and an action to foreclose a tax lien can only be brought within ninety days immediately after expiration of such time for redemption. Bish v. Fletcher, 219 Neb. 863, 366 N.W.2d 778 (1985), is overruled. County of Lancaster v. Maser, 224 Neb. 566, 400 N.W.2d 238 (1987). Foreclosure of a tax lien must be brought within ninety days after the expiration of the right to redeem. In accordance with section 77-1837, such redemption right expires three years plus ninety days from the date of the original sale. Bish v. Fletcher, 219 Neb. 863, 366 N.W.2d 778 (1985). 2. Miscellaneous Judicial foreclosure requires the holder of a tax certificate to foreclose on the lien for taxes in the district court of the county where the property is located. HBI, L.L.C. v. Barnette, 305 Neb. 457, 941 N.W.2d 158 (2020). Where the successful bidder purchased a tax sale certificate by bidding down to a 1-percent undivided interest of property, its lien to be judicially foreclosed was limited to 1 percent of the property. Adair Asset Mgmt. v. Terry's Legacy, 293 Neb. 32, 875 N.W.2d 421 (2016). This section requires an individual to act pursuant to section 77-1917 in order to redeem property during the pendency of a foreclosure action. Neun v. Ewing, 290 Neb. 963, 863 N.W.2d 187 (2015). Authority to proceed under equity powers is limited by remaining provisions of tax foreclosure act. Madison County v. School Dist. No. 2, 148 Neb. 218, 27 N.W.2d 172 (1947). In foreclosure under this section, court may refuse confirmation of sale where increased bid has been made after sale and before confirmation. County of Gage v. Beatrice Neb. Water Co., 147 Neb. 236, 22 N.W.2d 696 (1946). This section is not the only avenue by which title to property sold at a tax sale can be obtained free and clear of previous liens. Knosp v. Shafer Properties, 19 Neb. App. 809, 820 N.W.2d 68 (2012). A delinquent taxpayer may redeem a tax sale certificate after a foreclosure action has been filed. KLH Retirement Planning v. Cejka, 3 Neb. App. 687, 530 N.W.2d 279 (1995).