Joint Venture Agreement

A joint venture agreement establishes terms for two or more parties to jointly invest in and manage a property or development, defining contributions, governance, and profit sharing.

JV Agreement ProvisionsContent
Capital contributionsCash and in-kind contributions by each party
Ownership percentagesEquity split, may differ from capital
Governance structureDecision-making authority, voting thresholds
Profit distributionWaterfall, preferred returns, promote
Roles and responsibilitiesSponsor, passive partner, day-to-day management
Exit provisionsBuyout, drag-along, tag-along rights
Dispute resolutionArbitration, deadlock mechanisms
Common JV StructuresExample
Developer and capital partnerDeveloper 20%, investor 80%, developer gets promote
50/50 equal partnershipEqual capital, equal decisions
Land and money JVLandowner contributes land, investor provides capital
Operating and financial partnerOperator brings expertise, investor provides capital
Preferred equity structureInvestor gets preferred return, developer upside
Typical splits80/20 after preferred return common

Related Terms

PartnershipCo-InvestmentDevelopment JVPromoteWaterfall Distribution

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