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Can one one owner only sign the lease of a jointly held IP?

Discussion in 'Property Management' started by Ravi, 8th Sep, 2016.

  1. Ravi

    Ravi Active Member

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    Hi,

    In case IP is owned jointly by husband and wife, can one person only sign the lease?
    Can this create problem during tax returns when both want to declare income and claim deductions?

    Is it mandatory to have both persons sign the lease and sign the rental bond form (in case DIY landlords)?

    Cheers,
    Ravi
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Who signs or does not sign the lease has nothing to do with the tax treatment of income and deductions on the property.
     
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Both parties are owners and have to sign as you are documenting a transaction or dealing with real property or signed under a registered power of attorney.

    If only one party has signed and the other hasn't agreed, what recourse do you have?
     
  4. JacM

    JacM VIC Buyer's Agent Business Member

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    I see you noted you are DIY landlords, but if you were not, why not just let your PM sign on your behalf ? The document authorizing them to manage the property on your behalf should have a tick box or option enabling them to do this for you.
     
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  5. Ravi

    Ravi Active Member

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    Thanks Scott. My question was based on the assumption that such situation will never arise. I should have mentioned it in my first post.

    My question is for a scenario where ATO makes an enquiry and if I have to supply lease document that shows one person's signature while both persons claiming income/deductions, could that be a problem then?

    I guess as @Propertunity Alan mentioned it should be okay to have just one person signed.
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    PU didnt say that.

    From a tax pov it doesnt matter who signs the lease.

    From a legal point of view the question is if only one joint owner signs is it still a valid lease? And or would it be binding.

    I am not sure of the answer but would think it is valid but the non signing owner could not be sued for breach of contract. But the laws of equity may come into play. The lease may be binding on them too if they know about it.
     
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