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Bill

LB 1007

Prohibit a landlord from keeping a security deposit when a rental agreement is not signed and prohibit nondisclosure terms in rental agreements

109th Legislature (2025-2026) Introduced by George Dungan

Nebraska bill prohibits landlords from keeping security deposits without signed rental agreements and bans nondisclosure clauses restricting tenant communication about lease conditions.

Notice of hearing for February 04, 2026
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Bill Summary · LB 1007

Legislative bill overview

LB 1007 would prohibit landlords from retaining security deposits when no signed rental agreement exists, and would ban nondisclosure clauses (often called "gag clauses") in rental agreements. The bill aims to protect tenants from losing deposits in informal arrangements and prevent landlords from restricting tenants' ability to discuss lease terms or conditions.

Why is this important

Security deposits represent significant money for many renters, and informal rental arrangements without written agreements create vulnerability to loss. Nondisclosure restrictions can prevent tenants from sharing information about habitability issues, safety hazards, or unfair practices with family, attorneys, or advocacy organizations—limiting their ability to seek help or hold landlords accountable.

Potential points of contention

  • Landlord burden: Requiring written agreements for all rentals increases administrative requirements and may complicate informal or short-term arrangements; enforcement mechanisms for landlords to ensure compliance are unclear
  • Scope of "nondisclosure" restrictions: The bill's language may be overly broad, potentially restricting legitimate confidentiality provisions (like financial terms) while attempting to prevent gag clauses, creating ambiguity
  • Practical implications: Unclear how this applies to month-to-month tenancies or what constitutes a "rental agreement"—some rental relationships may fall into legal gray areas

Compiled from official sources — confirm details with the bill’s official record.

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