Selling a House with Renters in Nebraska: What Landlords Need to Know
Selling a property with active tenants in Nebraska requires careful navigation of both landlord-tenant law and real estate regulations. Nebraska landlords must honor existing lease agreements when selling rental property, while providing proper notice to tenants according to state statutes.
Failure to follow proper procedures when selling tenant-occupied property in Nebraska could result in legal disputes, delayed sales, or financial penalties. Always consult with a real estate attorney familiar with Nebraska landlord-tenant law before listing a rental property for sale.
Key Considerations
Scenarios
Decisions
Scenarios
Decisions
Scenarios
Decisions
Relevant Documents
Assignment of Leases
A legal document that transfers the landlord's rights and obligations under existing lease agreements to the new property owner, ensuring continuity of the tenancy terms.
Cash for Keys Agreement
A document that formalizes an arrangement where the property owner offers financial incentive to tenants to vacate the property voluntarily before the sale or closing date.
Early Lease Termination Agreement
If the seller and tenants mutually agree to end the lease early before the sale, this document outlines the terms of that agreement, including any compensation or notice periods.
Estoppel Certificate
A document signed by tenants confirming the terms of their lease, current rent amount, security deposit held, and that the landlord is not in default. This provides assurance to potential buyers about the status of existing tenancies.
Notice to Tenants of Intent to Sell
A formal written notice informing tenants of the property owner's intention to sell the property. This document helps establish clear communication and may be required by law in many jurisdictions.
Property Disclosure Statement
A document where the seller discloses known material defects and other important information about the property, including the presence of tenants and the terms of their occupancy.
Real Estate Purchase Agreement
The contract between seller and buyer that should specifically address the existence of tenants, the status of their leases, and how those leases will be handled during and after the sale.
Rent Roll
A document that lists all rental units, current tenants, lease terms, monthly rent amounts, security deposits, and payment histories. This provides potential buyers with a clear picture of the property's rental income.
Security Deposit Transfer Agreement
A document that formalizes the transfer of tenant security deposits from the seller to the buyer, including accounting for all deposits and accrued interest where applicable.
Relevant Laws
Nebraska Landlord and Tenant Act - Notice Requirements
When selling a property with tenants in Nebraska, landlords must respect existing lease agreements. For month-to-month tenancies, landlords must provide at least 30 days' written notice before terminating the tenancy. For fixed-term leases, the lease generally transfers to the new owner who must honor its terms until expiration.
Nebraska Revised Statute 76-1437 - Landlord's Remedies After Termination
This statute outlines the legal process for terminating tenancies in Nebraska. When selling a property, landlords cannot simply evict tenants without proper cause. The sale of a property is not considered legal grounds for eviction if there is an existing lease in place.
Nebraska Revised Statute 76-1416 - Security Deposits
When selling a property with tenants, the landlord must either transfer the security deposits to the new owner or return them to the tenants. The statute requires written notification to tenants about the transfer of their security deposit to the new owner, including the new owner's name and address.
Nebraska Revised Statute 76-1417 - Disclosure Requirements
Landlords in Nebraska must disclose to potential buyers if the property has tenants and provide details of existing lease agreements. Similarly, sellers must inform tenants about the change in ownership once the property is sold, including providing contact information for the new landlord.
Nebraska Revised Statute 76-2,120 - Seller Property Disclosure Statement
This statute requires sellers to disclose material facts about the property, which includes information about current tenancies. Failing to disclose tenant occupancy could potentially lead to legal issues with the buyer after the sale is completed.
Regional Variances
Major Cities in Nebraska
Omaha follows Nebraska state law regarding selling tenant-occupied properties, but has additional notice requirements. Landlords must provide tenants with at least 60 days' written notice before showing the property to potential buyers, compared to the state minimum of 24 hours. The Omaha Tenant Assistance Program also offers resources to tenants displaced due to property sales.
Lincoln has enacted tenant protection ordinances that require sellers to disclose existing lease terms to potential buyers. If a property is sold with tenants, the new owner must honor the existing lease until its expiration. Lincoln also requires 30 days' written notice before property showings, and tenants have the right to be present during showings.
Eastern Nebraska Counties
Douglas County (outside Omaha city limits) follows Nebraska state law but has established a Tenant-Landlord Mediation Program to resolve disputes that may arise during property sales. Sellers must provide documentation of this program to tenants when listing a property for sale.
Lancaster County (outside Lincoln city limits) requires sellers to provide tenants with a 'Notice of Property Sale' form at least 30 days before listing the property. This form must include information about tenant rights during the sale process and potential outcomes after the sale is completed.
Western Nebraska Regions
Scottsbluff has minimal additional regulations beyond state law. However, local practice typically involves providing tenants with 45 days' notice before property showings, though this is customary rather than legally required. The city also offers a housing assistance program for tenants who need to relocate due to property sales.
North Platte follows state law but has established a local ordinance that gives tenants the right of first refusal when a rental property is listed for sale. Property owners must offer current tenants the opportunity to purchase the property before accepting offers from other buyers, with a 15-day consideration period.
Suggested Compliance Checklist
Review Existing Lease Agreements
1 days after startingCarefully review all current lease agreements to understand tenant rights, lease terms, and obligations. Nebraska law requires landlords to honor existing leases even when the property is sold. Pay special attention to lease duration, renewal options, security deposit amounts, and any special provisions that might affect the sale.
Prepare Property Disclosure Statement
7 days after startingNebraska law requires sellers to disclose known material defects about the property. Complete a comprehensive disclosure statement that includes information about the property's condition, known defects, environmental issues, and other material facts. This must be provided to potential buyers before they make an offer.
Create a Rent Roll Document
7 days after startingPrepare a detailed rent roll that includes information about each tenant, their lease terms, monthly rent amounts, security deposits held, and payment history. This document will be essential for potential buyers to understand the rental income and tenant situation.
Notify Tenants of Intent to Sell
10 days after startingWhile Nebraska law doesn't specifically require notifying tenants of your intent to sell, it's a best practice to provide written notice. This helps maintain good relationships and prepares tenants for property showings. The notice should explain the sale process, how it might affect them, and reassure them that their lease rights will be preserved.
Establish Property Showing Procedures
10 days after startingUnder Nebraska law, landlords must provide reasonable notice (typically 24 hours) before entering a rental unit. Establish and communicate a clear procedure for property showings that respects tenant privacy rights while facilitating the sale process. Document this procedure and share it with tenants and your real estate agent.
Request Estoppel Certificates from Tenants
14 days after startingAsk each tenant to complete an estoppel certificate that verifies the terms of their lease, current rent amount, security deposit held, and confirms they have no claims against the landlord. This document protects both the seller and buyer by documenting the current tenant-landlord relationship status.
Evaluate Options for Vacant Possession
21 days after startingIf you prefer to sell the property without tenants, research your legal options. In Nebraska, you cannot terminate a lease simply because you want to sell. Options include waiting for leases to expire naturally, offering cash incentives for early termination, or selling to a buyer willing to assume the leases.
Prepare Cash for Keys Agreement (If Applicable)
28 days after startingIf you decide to offer financial incentives for tenants to vacate early, draft a 'Cash for Keys' agreement. This document should clearly outline the amount offered, move-out date, property condition requirements, and release of future lease obligations. Ensure the agreement complies with Nebraska landlord-tenant laws and doesn't appear coercive.
Draft Early Lease Termination Agreement (If Applicable)
28 days after startingIf tenants agree to terminate their lease early without a cash incentive, create a formal agreement documenting this arrangement. The agreement should specify the move-out date, handling of security deposits, and mutual release of future obligations under the lease. Both parties must sign this document for it to be valid.
Prepare Real Estate Purchase Agreement
35 days after startingWork with your real estate agent or attorney to prepare a purchase agreement that addresses the presence of tenants. The agreement should specify whether the property is being sold with tenants in place, how security deposits will be handled, and include appropriate contingencies and disclosures related to the rental situation.
Create Security Deposit Transfer Agreement
40 days after startingNebraska law requires landlords to either return security deposits to tenants or transfer them to the new owner. Prepare an agreement that documents the transfer of all security deposits to the buyer, including detailed accounting of each deposit amount, any deductions made, and accrued interest if applicable.
Draft Assignment of Leases
40 days after startingPrepare a formal assignment of leases document that transfers all landlord rights and obligations under existing leases to the new owner. This document should list all current leases, their key terms, and include representations about the status of each lease. This protects both parties during the ownership transition.
Notify Tenants of Ownership Change
45 days after startingOnce the sale is finalized, Nebraska law requires providing written notice to all tenants about the change in ownership. This notice should include the new owner's name, address, contact information, and instructions for future rent payments and maintenance requests.
Transfer Utilities and Service Contracts
45 days after startingCoordinate with the buyer to transfer all utility accounts and service contracts related to the rental property. Ensure all accounts are properly closed or transferred to avoid interruptions in service for tenants, which could violate your landlord obligations under Nebraska law.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Review Existing Lease Agreements | Carefully review all current lease agreements to understand tenant rights, lease terms, and obligations. Nebraska law requires landlords to honor existing leases even when the property is sold. Pay special attention to lease duration, renewal options, security deposit amounts, and any special provisions that might affect the sale. | - | 1 |
| Prepare Property Disclosure Statement | Nebraska law requires sellers to disclose known material defects about the property. Complete a comprehensive disclosure statement that includes information about the property's condition, known defects, environmental issues, and other material facts. This must be provided to potential buyers before they make an offer. | Property Disclosure Statement | 7 |
| Create a Rent Roll Document | Prepare a detailed rent roll that includes information about each tenant, their lease terms, monthly rent amounts, security deposits held, and payment history. This document will be essential for potential buyers to understand the rental income and tenant situation. | Rent Roll | 7 |
| Notify Tenants of Intent to Sell | While Nebraska law doesn't specifically require notifying tenants of your intent to sell, it's a best practice to provide written notice. This helps maintain good relationships and prepares tenants for property showings. The notice should explain the sale process, how it might affect them, and reassure them that their lease rights will be preserved. | Notice to Tenants of Intent to Sell | 10 |
| Establish Property Showing Procedures | Under Nebraska law, landlords must provide reasonable notice (typically 24 hours) before entering a rental unit. Establish and communicate a clear procedure for property showings that respects tenant privacy rights while facilitating the sale process. Document this procedure and share it with tenants and your real estate agent. | - | 10 |
| Request Estoppel Certificates from Tenants | Ask each tenant to complete an estoppel certificate that verifies the terms of their lease, current rent amount, security deposit held, and confirms they have no claims against the landlord. This document protects both the seller and buyer by documenting the current tenant-landlord relationship status. | Estoppel Certificate | 14 |
| Evaluate Options for Vacant Possession | If you prefer to sell the property without tenants, research your legal options. In Nebraska, you cannot terminate a lease simply because you want to sell. Options include waiting for leases to expire naturally, offering cash incentives for early termination, or selling to a buyer willing to assume the leases. | - | 21 |
| Prepare Cash for Keys Agreement (If Applicable) | If you decide to offer financial incentives for tenants to vacate early, draft a 'Cash for Keys' agreement. This document should clearly outline the amount offered, move-out date, property condition requirements, and release of future lease obligations. Ensure the agreement complies with Nebraska landlord-tenant laws and doesn't appear coercive. | Cash for Keys Agreement | 28 |
| Draft Early Lease Termination Agreement (If Applicable) | If tenants agree to terminate their lease early without a cash incentive, create a formal agreement documenting this arrangement. The agreement should specify the move-out date, handling of security deposits, and mutual release of future obligations under the lease. Both parties must sign this document for it to be valid. | Early Lease Termination Agreement | 28 |
| Prepare Real Estate Purchase Agreement | Work with your real estate agent or attorney to prepare a purchase agreement that addresses the presence of tenants. The agreement should specify whether the property is being sold with tenants in place, how security deposits will be handled, and include appropriate contingencies and disclosures related to the rental situation. | Real Estate Purchase Agreement | 35 |
| Create Security Deposit Transfer Agreement | Nebraska law requires landlords to either return security deposits to tenants or transfer them to the new owner. Prepare an agreement that documents the transfer of all security deposits to the buyer, including detailed accounting of each deposit amount, any deductions made, and accrued interest if applicable. | Security Deposit Transfer Agreement | 40 |
| Draft Assignment of Leases | Prepare a formal assignment of leases document that transfers all landlord rights and obligations under existing leases to the new owner. This document should list all current leases, their key terms, and include representations about the status of each lease. This protects both parties during the ownership transition. | Assignment of Leases | 40 |
| Notify Tenants of Ownership Change | Once the sale is finalized, Nebraska law requires providing written notice to all tenants about the change in ownership. This notice should include the new owner's name, address, contact information, and instructions for future rent payments and maintenance requests. | - | 45 |
| Transfer Utilities and Service Contracts | Coordinate with the buyer to transfer all utility accounts and service contracts related to the rental property. Ensure all accounts are properly closed or transferred to avoid interruptions in service for tenants, which could violate your landlord obligations under Nebraska law. | - | 45 |
Frequently Asked Questions
Yes, you can sell your property in Nebraska even with tenants living in it. However, the sale does not automatically terminate existing lease agreements. The new owner generally must honor the terms of any existing lease until it expires, as leases run with the land in Nebraska. Month-to-month tenancies can be terminated with proper notice.
Nebraska law doesn't require you to give tenants notice specifically about selling the property. However, if you need to access the property for showings, you must provide reasonable notice (typically 24 hours) before entering. If you want to terminate a month-to-month tenancy, you must provide at least 30 days' written notice. Fixed-term leases cannot be terminated early just because you want to sell.
No, wanting to sell your property is not legal grounds for eviction in Nebraska. You can only evict tenants for legally valid reasons such as non-payment of rent, lease violations, or illegal activities. If you have a fixed-term lease with tenants, you must wait until the lease expires or negotiate a voluntary termination with your tenants.
When you sell your property, you should transfer all security deposits to the new owner and provide an accounting of these funds. Nebraska law requires that the new owner becomes responsible for returning security deposits at the end of tenancies. Make sure to document this transfer in your sale agreement to protect yourself from future liability.
Yes, you should disclose to potential buyers that the property has tenants and provide details about the lease terms. This is important information that affects the buyer's rights and responsibilities after purchase. Failing to disclose this information could potentially lead to legal issues after the sale is completed.
Yes, you can show your house to potential buyers while tenants are living there, but you must provide reasonable notice before entering the property (typically 24 hours in Nebraska). The tenant's right to quiet enjoyment of the property must be respected. It's advisable to work out a showing schedule that minimizes disruption to your tenants.
If tenants refuse reasonable requests for showings after proper notice, they may be violating their lease obligations. Most standard leases include provisions allowing landlords to show the property to prospective buyers with reasonable notice. If this becomes an issue, you may want to offer incentives for cooperation or, as a last resort, consult with an attorney about your options.
If there is an existing fixed-term lease, the new owner cannot raise the rent until that lease expires. They are bound by the terms of the existing lease. For month-to-month tenancies, the new owner can increase rent with proper notice (typically 30 days in Nebraska), but they must still comply with any local rent control ordinances if applicable.
Waiting until a lease expires can make the property more attractive to buyers who want immediate possession, potentially increasing your pool of interested buyers. However, having reliable tenants with a stable rental history can also be attractive to investor buyers. The best approach depends on your target buyer and market conditions.
While not legally required in Nebraska, offering your tenants the first opportunity to purchase the property can be a good practice. Your tenants may be interested in buying, which could simplify the sale process. If they're not interested, you've demonstrated good faith, which might help secure their cooperation during the sale process.