
It sounds as though your dog is being perfectly normal (though annoying!) and marking over another dog's wee. Your in-laws must make sure they clean very thoroughly (biological washing liquid and surgical spirit -
not bleach) where their bitch has wet so that there is no scent (undetectable to humans but clear as a bell to a dog) remaining. Make sure that you always greet the bitch out of doors where excitement-wees don't matter, and keep your boy on a lead indoors.
:)