Legal Question in Real Estate Law in California

Yes. Owners can establish pretty much whatever compensation plan they want. Bear in mind, however, that as a partnership, the income should be reported as K-1 profit distributions, regardless of how the amounts are determined, whether commission, draw (which is the equivalent of salary) or just straight divided profits. To the tax people everything a partner gets from a partnership is profit or loss from a business.

I agree with Mr. McCormick. I feel that I should add that what he says is true of co-owners in general, whether they in fact have a partnership or are simply co-owners of the property. Not all co-ownership of real estate results in a true partnership.