If any encumbrance is ascertained to exist, the proceeds of the sale of that portion, after the payment of costs, or so much thereof as is necessary, shall, if the owner consents, be paid over to the encumbrancer.
§ 25-2190.Encumbrances; payment with consent of owner.
Article 21: Special Proceedings and Actions · Not amended since original codification · Last verified July 22, 2026
In one sentenceThis section lets the referee pay an encumbrancer directly out of the sale proceeds tied to the encumbered portion of land, once the encumbrance’s existence is established and the owner consents, after covering the costs of the proceeding.
Full Text of § 25-2190
Source
R.S.1867, Code § 823, p. 540; R.S.1913, § 8306; C.S.1922, § 9258; C.S.1929, § 20-2190; R.S.1943, § 25-2190.
Plain-English Summary
Once a referee’s inquiry confirms that an encumbrance exists on a share of the partitioned land, section 25-2190 provides a direct route to paying it off. The proceeds from selling that encumbered portion, after covering costs, or as much of the proceeds as necessary, go to the encumbrancer — but only if the owner consents.
Owner consent is the hinge the whole section turns on. Where the owner agrees the encumbrance is valid and should be paid from the sale proceeds, the process moves forward without further dispute. Where the owner objects, a different section in this article takes over instead.
Frequently Asked Questions
Who gets paid first from the proceeds of a partition sale when an encumbrance is confirmed?
Costs are covered first, and then the encumbrancer receives payment from what remains of the proceeds attributable to that encumbered portion.
Is the owner’s agreement required before the encumbrancer gets paid this way?
Yes. This section applies only if the owner consents to the payment.
What happens if the owner does not consent?
A separate section in this article addresses that situation, directing the money to be held pending further proceedings.
Does the encumbrancer get paid from the whole sale, or just the affected parcel?
From the proceeds of the sale of the portion of the property carrying the encumbrance.
Does the encumbrancer receive the full sale price of that portion?
Only so much of the proceeds as is necessary to satisfy the encumbrance, after costs.
Who determines that an encumbrance exists before this payment happens?
The referee’s inquiry, addressed in the preceding sections of this article, establishes the encumbrance’s existence and amount.
Source & verification. Section text and the amendment-history citation are
reproduced verbatim from the Nebraska Legislature, Revisor of Statutes, enacted by the
Nebraska Legislature. Last verified July 22, 2026. ·
Official source
Also known as: paying encumbrance from sale proceedsowner consent encumbrance paymentmortgage payoff partition sale nebraskaencumbrancer paid from proceedspartition sale proceeds distribution