Not a tax or legal expert but just My thought, just my thoughts, .....
The person doing the stamping at the stamp office are not legal professional nor are they responsible to go through it to point out mistakes in the document.
Signed and stamped may still not a valid legal document if it has elements of fraud.
Stamped just can be admitted to the court for evidence.
The owner may just buat tak tahu that (his FIL) rents out the property to make money.
With the stamped rental agreement, the tenant can claim rental expenses for his business, the FIL pocket the rental money.
If lhdn audited the rental expenses transaction flow, will most probably check if the receiver of the rent reported the rental income.
If the tenant did not claim rental expenses, then the FIL keep the money, until when lhdn connected the dots through the stamp duty office.
They may have super computer to easily auto cross reference IC number in the agreement against reported rental income in the ITR of that individual, if lhdn wanted to.
If the "disgrunted" tenant knew about he is not a landlord and has no authorised power to sign the agreement or collect rental, and not willing to pay for damaged property, then .....Who go to court to seek grievances? The owner or FIL?
Or if the tenant got caught for doing "illegal" activities in the rented property, then .....Who go to the authorities to clarifies? The owner or the FIL?
Or if the property caught fire, will the insurance company pay or delay payments after knowing that the tenant was not rented out by the owner or had he authorised anyone to rent it out to collect rents?
Just some of my scenario making imagination for fun
https://btcolaw.com/f/stamping-a-contract-i...ts%20of%20fraud.
My FIL will report the rental income under his tax submission while my submission will omit it this year if this goes thru.
Now on the other legal terms, I think I better check with the property agent my FIL used. Maybe I can rent at RM1 or RM0 to my FIL and allow him to sublet. He can then do a sublet tenancy agreement instead. Mmm...see if it can be done.