What is a joint venture?

A joint venture is defined as an agreement between two or more parties to collaborate on a specific project or undertaking. This arrangement is typically formed for a limited duration or for the purpose of achieving a particular goal, such as developing real estate or conducting a business operation. The parties involved share the risks, costs, and rewards associated with the project, which distinguishes it from a general partnership or traditional business entity that may have broader ongoing objectives.

In a joint venture, each participant retains its independence while contributing resources, knowledge, or capital toward the project. This concept is particularly common in real estate where multiple investors or developers come together to maximize their investment potential and share the responsibilities of the project.

The other options pertain to different aspects of real estate and property law. An estate type with inheritable rights refers to ownership interests that can be passed down through inheritance. A type of real estate ownership implies a specific legal structure under which real property is held, such as joint tenancy or tenancy in common. A legal description is a precise way to describe property boundaries and is used in legal documents. In contrast, the joint venture focuses specifically on a collaborative effort for a singular purpose, making option B the most accurate definition.