In March 2025, Nebraska Governor Jim Pillen signed LB187 into law. This law brought major changes to Nebraska’s land laws. This law will start on July 1, 2025. Some parts will begin on January 1, 2026. It affects how real estate professionals work. It also changes how buyers, sellers, landlords, tenants, and investors take part in real estate deals.
LB187 addresses issues ranging from agency relationships to wholesaling restrictions, education standards, and advertising rules. Whether you’re a licensed agent, a homeowner preparing to list, or a buyer entering the market, here’s what you need to know.
A New Era for Real Estate Representation
What’s Changing for Buyers and Sellers
Historically, many real estate relationships began casually: an agent would show a property, discuss pricing, or answer questions, all before any formal agreement was signed. Under LB187, that approach is no longer allowed in many cases.
Key Change:
Suppose you’re a Nebraska land buyer looking at residential properties with 1 to 4 units. In that case, your agent must now enter into a written buyer agency agreement with you before performing any brokerage services. This includes showings, pricing opinions, or submitting offers.
What the Agreement Includes:
- The agent’s duties to you
- How they’ll be compensated
- Whether other agents might assist
- A clear expiration date
For Sellers:
These requirements already existed for listing agreements, but LB187 reinforces that the contract must:
- Be entered into before services begin
- Clearly outline agent responsibilities and expiration
- Be signed and provided to you immediately
Why it Matters:
This change protects both sides. Buyers will now know exactly who represents them and how agents are paid. Sellers can expect tighter oversight and documentation throughout the listing process.
Wholesaling Restrictions: A New Line Drawn
For years, unlicensed wholesalers operated in a gray area, tying up properties under contract and reselling the contracts for a profit, without ever owning the home. LB187 puts an end to that.
New Rule:
If someone is marketing an equitable interest in a real estate contract (i.e., the right to purchase a property), and the property is not vacant land, they’re now considered to be engaging in the business of real estate and must be licensed under Nebraska law.
Implications for the Public:
- Sellers: Be cautious if someone offers to buy your home, then quickly tries to assign the contract. They may now be violating license law.
- Buyers: Know that assigning contracts or wholesaling homes requires a license in most cases.
- Investors: If you engage in wholesaling, consult legal counsel and consider getting licensed.
Broker and Salesperson Education Requirements Updated
LB187 also modernizes how real estate professionals are trained.
For the Public:
This means the person representing you is expected to have:
- More focused training in contracts, risk management, and trust accounting
- Mandatory post-license education within 180 days of getting licensed
- A better understanding of how to handle client funds and avoid conflicts of interest
Effective January 1, 2026:
- Salesperson pre-licensing courses are reduced from 90 to 60 hours
- All licensees must complete 12 hours of post-license training, including writing contracts, explaining disclosures, and managing escrow
Why it Matters to You:
Expect better-prepared agents. New licensees will no longer just pass an exam, they’ll complete real-world, hands-on training early in their career.
Dual Agency and Subagency: Tighter Rules, More Transparency
Dual agency (where one agent represents both buyer and seller) is legal in Nebraska, but now it must be fully documented upfront.
New Requirements:
- Dual agency must be agreed to in writing, not just disclosed verbally
- Consent must include a breakdown of duties and who is paying the commission
- Confirmations must occur before any contracts or leases are signed
For the Public:
If you’re in a deal where one agent is involved on both sides, you’ll now be asked to sign a dual agency disclosure early, and it must be specific, not vague.
Advertising, Ethics, and Fair Trade Practices Strengthened
LB187 tightens up what’s acceptable in real estate marketing and consumer interaction. New Provisions Include:
- Clear broker identification: Team ads must clearly display the broker’s legal name.
- No misleading team names: Groups can’t advertise as if they’re independent firms.
- Earnest money protections: Land agents can’t collect commissions out of earnest deposits until a deal is finalized.
- Referral fee restrictions: Only licensed professionals or certain international agents can legally receive fees.
For Consumers:
You can expect more transparent advertising, fewer misleading names, and better handling of your funds.
Bottom Line: More Structure, More Protection
Nebraska land law, LB187, is a response to a fast-evolving real estate environment, one where the lines between licensed agents, investors, and marketing professionals were becoming blurred. The Nebraska land laws bring clarity, accountability, and better protection for the people involved in every transaction.
Whether you’re listing your home, buying your first property, or exploring investment options, it’s smart to work with a licensed, educated professional who understands the new law and puts your interests first.
Do you want to learn more about Nebraska land laws?
Are you thinking of selling your Nebraska land and don’t know where to start? Reach out to a local High Point Land Company agent. For more questions regarding Nebraska land real estate, visit our YouTube Knowledge Center!
