Bulletin: NE2007001

Dear Associates:

In 1982, an amendment to the Constitution of the State of Nebraska was enacted to prohibit ownership of agricultural land by corporations and other legal entities in Nebraska.  This amendment, commonly referred to as "Initiative 300" was recently challenged in the federal court system, where it was found by the United States Court of Appeals for the Eighth Circuit to be unconstitutionally discriminatory against non-Nebraskans.  This finding was appealed to the United States Supreme Court, which recently refused to review the lower court's decision, thus effectively negating Initiative 300.

Agents are reminded that Nebraska Revised Statutes Sections 76-402 through 76-415 prohibit ownership of Nebraska real estate by aliens and corporations not incorporated under the laws of the State of Nebraska.  There are a number of "exemptions" to the provisions of the statute, which should be consulted before insuring title to real estate owned by, or to be owned by, an alien or a corporation not incorporated under the laws of the State of Nebraska.

Nebraska Land Title Examination Standard No. 3.2 contains a good explanation and summary of these statutory provisions.

Please consult with Stewart underwriting personnel before insuring title in an alien or non-Nebraska corporation.