Joint venture (JV)

A property joint venture is an arrangement where two or more parties combine resources — capital, equity, skills or time — to undertake a property purchase or development together.

Why investors use them

The common pattern is one party with capital and another with skills, time or deal flow. JVs let investors take on projects neither could do alone, and spread risk across parties.

Common structures

• A company with shareholders and a shareholders' agreement
• A limited partnership
• A trust
• A contractual JV with no separate entity
• Tenants in common with an agreement between the owners

Each has different tax, liability and exit consequences. Structure should be decided with an accountant and a lawyer before money moves.

What must be agreed in writing

• Who contributes what, and when
• How profits and losses are split
• Who makes decisions, and what needs unanimity
• What happens if one party cannot fund a capital call
• Exit — when and how the property is sold, and what happens if one party wants out early
• Dispute resolution
• What happens on death, divorce or insolvency of a party

Common misunderstanding

Most JV disputes are about exit, not entry. Everyone agrees at the start; the arguments come when one party needs their money out and the other does not want to sell. Agree the exit mechanism in writing at the beginning.

A handshake JV between friends or family is the highest-risk version. The relationship is precisely why people skip the documentation, and precisely what gets destroyed when it goes wrong.

Associated persons rules can apply, so your JV partner's occupation may affect your tax position.

Related terms

Last reviewed: 1 August 2026 · General information only, not legal or financial advice.

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