How do you do joint endorsements?
A shared signature may be needed on a check made out to more than one person brought in to be cashed or deposited. The joint endorsement goal is to ensure that no one deposits or cashes a check without the other person’s knowledge or permission.
How to Understand Joint Endorsement
There are different rules for shared signatures in each state, bank, and even type of check. If a married couple writes a check and deposits it into their joint account, many banks will not require both spouses to sign it. This is because the money goes into an account that both can access. On the other hand, most banks will not let you deposit U.S. government checks (like tax return checks) without jointly endorsing them. This is the case even if you have a joint account.
The little things matter
The way the check is written can show if a shared signature is needed. In most cases, if there is a space between the two client names on a check, either the word “and” or a symbol or abbreviation of “and,” the bank can ask for a joint signature. For example, a check made to “Jane Doe and John Doe,” “Jane Doe & John Doe,” or “Jane Doe + John Doe” would mean shared support. But if there is only one comma between the payee names on the check, like “Jane Doe, John Doe,” then either person could sign the check. Not all banks will follow these rules, and some may even want shared support.
Sometimes, both people who need to sign the check to share it cannot be there simultaneously. One recent split couple whose ex-spouse has a restraining order against the other could be a problem for the bank because it is hard to check or ask for signatures on a check. When this happens, the bank deals with both parties separately or asks for a new copy of the joint check, which is made out to each person separately.
Joint Endorsements in Deals Between Landlords and Tenants
Joint recommendations are a common issue between landlords and tenants because many people live with roommates who share bills and responsibilities but are not married or connected in any other way. When returning the security deposit, a landlord may write the check to both or all of the renters mentioned on the lease. The check should have some form of “and” between the names. Add the letters JT to the names often; this means “joint tenants.” When two roommates who are not related to each other have different bank accounts, the landlord’s check can only be put into one of them. In this case, both renters still need to sign the refund check before it can be put in one of their bank accounts. The person who left the deposit would probably send another check to the other renter.
Conclusion of Joint Endorsement
- There needs to be a shared signature on checks payable to more than one person.
- When the word splits a check with two client names, “and” or any sign or abbreviation of “and,” the bank can ask for a joint endorsement. This is because of the way the law works.
- With two client names split by the word “or,” a signature from either party is sufficient.
- Usually, two people need to sign for tax return checks.
