Commercial real estate disputes are a common occurrence in Nebraska. These disputes can arise between landlords and tenants, buyers and sellers, or even between neighboring property owners. When a dispute arises, it’s important to understand the laws and regulations that apply in Nebraska to resolve the issue. In this blog post, we’ll provide an overview of commercial real estate disputes in Nebraska and the laws that apply.
Commercial Real Estate Disputes in Nebraska
Common Types of Commercial Real Estate Disputes
There are several types of commercial real estate disputes that can arise in Nebraska. Here are some of the most common:
1. Lease Disputes
Lease disputes often arise between landlords and tenants and can involve issues such as non-payment of rent, breach of lease agreements, or disputes over repairs and maintenance.
2. Purchase and Sale Disputes
Purchase and sale disputes arise between buyers and sellers of commercial real estate and can involve issues such as misrepresentation of property condition, failure to disclose material defects or disputes over financing.
3. Easement Disputes
Easement disputes arise between neighboring property owners and can involve issues such as access to the property, use of shared facilities, or disputes over property boundaries.
Laws and Regulations that Apply in Nebraska
When a commercial real estate dispute arises in Nebraska, several laws and regulations may apply. Here are some of the most important:
1. Nebraska Landlord and Tenant Law
Nebraska’s Uniform Residential Landlord and Tenant Act governs rental agreements for dwelling units, meaning homes and other residential space, so it does not control commercial leases. A commercial tenancy is governed mainly by the terms of the lease itself, together with general Nebraska contract and real property law.
2. Nebraska Uniform Commercial Code
Article 2 of the Nebraska Uniform Commercial Code governs transactions in goods, which are things movable at the time of the contract, and real estate is not goods. A sale of commercial real estate is governed by the purchase agreement and Nebraska contract and real property law, although Article 2 may apply to equipment or other goods sold along with the property. For goods, Article 2 covers issues such as warranties, risk of loss, and remedies for breach of contract.
3. Nebraska Real Estate License Act
The Nebraska Real Estate License Act regulates the licensing and conduct of real estate brokers and salespersons in Nebraska. It provides guidelines for advertising, disclosure of property condition, and other issues related to real estate transactions.
4. Trespass and Property Damage Claims
Nebraska law also provides remedies when another person trespasses on or damages property. It allows property owners to recover damages for the harm caused by others and provides guidelines for disputes over property boundaries and easements.
Rent Increases
In today’s day, everyone is struggling to make ends meet. It is important for a commercial landlord to understand the laws applicable to rent increases. Below are a few of note:
1. Rent Increases in Lease Agreements
The first place to look when considering rent increases is the lease agreement. Commercial lease agreements typically outline the terms of the tenancy, including the rent amount and any provisions for rent increases. In Nebraska, commercial landlords and tenants are generally free to negotiate rent increase terms, and the lease controls.
2. Notice Requirements for Rent Increases
For a commercial lease, the lease terms generally control whether, when, and how rent may increase, including any advance written notice the landlord must give. A landlord or tenant reviewing a proposed increase should start with the rent, renewal, and notice provisions of the lease.
3. Limitations on Rent Increases
For commercial space, the amount of a rent increase is limited mainly by what the lease allows. Nebraska does not have rent control laws, which means there is no limit on the amount a landlord can increase rent.
4. Retaliation Protections for Tenants
Nebraska’s statutory protection against retaliatory rent increases is part of the Uniform Residential Landlord and Tenant Act and applies to residential tenancies. It bars a residential landlord from raising rent because the tenant complained to a code enforcement agency about a housing code violation affecting health and safety, or joined a tenants’ union. A commercial tenant should look to the lease and general contract law instead.
5. Fair Housing Laws
Finally, the Nebraska Fair Housing Act prohibits discrimination in the sale or rental of dwellings, meaning buildings used or intended as residences, so it generally does not govern rent for commercial space. Other anti-discrimination laws may still apply to a commercial lease in some circumstances, so a commercial tenant with that concern should get legal advice.
Resolving Commercial Real Estate Disputes in Nebraska
When a commercial real estate dispute arises in Nebraska, there are several ways to resolve the issue. Here are some of the most common methods:
1. Negotiation
Often, the best way to resolve a commercial real estate dispute is through negotiation between the parties involved. This can involve direct communication or mediation with the assistance of a neutral third party.
2. Litigation
If negotiation is not successful, the parties may choose to pursue litigation. This involves filing a lawsuit and presenting evidence in court to establish the facts of the case and obtain a judgment.
3. Alternative Dispute Resolution
In some cases, alternative dispute resolution methods such as arbitration or mediation may be used to resolve the dispute. These methods are often faster and less expensive than traditional litigation.
Commercial Real Estate Disputes
Commercial real estate disputes can be complex and challenging to resolve. However, by understanding the laws and regulations that apply in Nebraska, attorneys and clients can better navigate these disputes and find a solution that works for all parties involved.
Whether through negotiation, litigation, or alternative dispute resolution, there are options available to resolve commercial real estate disputes in Nebraska. Contact the Omaha real estate attorneys at Horgan Law LLC to discuss your commercial real estate needs today!
Frequently Asked Questions
What are the most common commercial real estate disputes in Nebraska?
Three common types are lease disputes between landlords and tenants, purchase and sale disputes between buyers and sellers, and easement disputes between neighboring owners. Lease disputes often involve unpaid rent, lease breaches, or repair obligations. Purchase disputes can turn on misrepresentation of property condition, nondisclosure of defects, or financing.
Is there rent control on commercial property in Nebraska?
No. Nebraska has no rent control laws, so there is no fixed cap on rent increases. The lease agreement is the first place to look for the rent amount and any terms for increases.
How are commercial real estate disputes resolved in Nebraska?
Many are resolved through negotiation, either directly or with a neutral mediator. Arbitration and mediation are often faster and less expensive than a lawsuit. Litigation remains available when other methods do not resolve the dispute.
What is an easement dispute between neighboring property owners?
An easement dispute arises between neighbors over issues such as access to the property, use of shared facilities, or property boundaries. Property owners can recover damages for property damage and trespass caused by others.
Horgan Law LLC | Omaha, NE
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