Legal Question in Real Estate Law in Montana
lease agreement
If my wife and I leagely own property together, and one of use sign a lease agreement and the other does not, is the lease agreement legal
2 Answers from Attorneys
Re: lease agreement
In contradiction to Judith's answer, I believe the lease to be legal. The first question you have to answer is how you own the property. Is it tenants in common or joint tenancy with right of survivorship? If it is joint tenancy with right of survivorship, then the joint tenancy then becomes null and void and reverts back to a tenancy in common. Under a tenancy in common, the land can be rented, but you are entitled to your fair share of the lease proceeds. You could make a case that you are entitled to half the proceeds anyway, regardless of how much land is rented. The lease is legal, but it's something that should not have been done. Therefore, the non-consenting party is entitled to damages.
Re: lease agreement
Good question. I have a current case where only the husband signed a 20 year lease and I argued it was not valid. Anything to do with real estate, especially if over 1 year, has to be in writing. I think both owners either have to sign the lease or the one signing should have the other's written power of attorney. If it is a landlord/tenant type situation, for less than 1 year lease term, I suppose the tenant could argue that he/she believed the signor had the other's authority to sign. If, however, the signer tries to invalidate the lease, the tenants move, and find a replacement at a higher cost, they could potentially sue for the difference against the signer. Depending on how long the lease is for, (and not more than 1 year tops) it may be best to let it run its course. I suppose the non-signer might also have a suit against the other if he/she thought it could have been leased for more $. So, to answer your question more clearly: no, I don't think the lease is legal. The real question comes down to what now do you do about it and how much will that cost.