UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q


[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
    Exchange Act of 1934

For the quarterly period ended September 30, 2006

                                       or

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
    Act of 1934

For the transition period from __________ to __________

Commission File Number: 0-13331


              REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP - III
              -----------------------------------------------------
             (Exact name of registrant as specified in its charter)



         Delaware                                         16-1234990
 -----------------------                  ------------------------------------
(State of organization)                    (IRS Employer Identification No.)


2350 North Forest Road, Getzville, New York 14068
-------------------------------------------------
(Address of principal executive offices)

(716) 636-0280
--------------
(Registrant's telephone number)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 120 days. Yes [X]  No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer. See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 for the Exchange Act . (Check
one):

Large accelerated filer [ ]   Accelerated filer  [ ]   Non-accelerated filer [X]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).
Yes [ ]     No  [X]
<PAGE>
Part I - FINANCIAL INFORMATION
Item 1. Financial Statements
        --------------------

                                         Statements of Net Assets in Liquidation
                                         ---------------------------------------
                                                   (Liquidation Basis)
<TABLE>
<CAPTION>

                                                                             (Unaudited)
                                                                            September 30,                  December 31,
                                                                                 2006                          2005
                                                                          -------------------             ----------------
<S>                                                                       <C>                                     <C>
Assets - receivable from affiliates                                       $          128,480                      114,266
                                                                          -------------------             ----------------

Liabilities:

     Accounts payable and accrued expenses                                             92,223                       57,187

     Estimated costs during the period of liquidation                                  36,257                       57,079
                                                                          -------------------             ----------------
         Total liabilities                                                            128,480                      114,266
                                                                          -------------------             ----------------
         Net assets in liquidation                                        $                 -                            -
                                                                          ===================             ================

</TABLE>





























                                       2
<PAGE>
                   Notes to Consolidated Financial Statements
                  Nine months ended September 30, 2006 and 2005
                                   (Unaudited)


Liquidation of the Partnership
------------------------------

On May 20, 2004, the Partnership sold its remaining real estate, at which time
the Partnership adopted a plan of termination and liquidation under which
liabilities will be paid and net proceeds will be distributed to the Partners.

Organization
------------

Realmark Property Investors Limited Partnership - III (the Partnership), a
Delaware limited partnership, was formed on November 18, 1983, to invest in a
diversified portfolio of income-producing real estate investments. The general
partners are Realmark Properties, Inc. (the corporate general partner) and
Joseph M. Jayson (the individual general partner). Joseph M. Jayson is the sole
shareholder of J.M. Jayson & Company, Inc. Realmark Properties, Inc. is a wholly
owned subsidiary of J.M. Jayson & Company, Inc. Under the partnership agreement,
the general partners and their affiliates can receive compensation for services
rendered and reimbursement for expenses incurred on behalf of the Partnership.

Basis of Presentation
---------------------

As a result of the plan of termination and liquidation, the Partnership changed
its basis of accounting to the liquidation basis effective May 21, 2004. Under
the liquidation basis of accounting, assets are stated at their estimated net
realizable values and liabilities are stated at their estimated settlement
amounts.

The accompanying unaudited interim consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in the
United States of America and the instructions to Form 10-Q. Accordingly, they do
not include all of the information and notes required by accounting principles
generally accepted in the United States of America for complete financial
statements. The statement of net assets in liquidation at December 31, 2005 has
been derived from the audited financial statements at that date. In the opinion
of management, all adjustments (consisting of normal recurring adjustments)
considered necessary for a fair presentation, have been included. The
Partnership's significant accounting policies are set forth in its December 31,
2005 Form 10-K. The interim financial statements should be read in conjunction
with the financial statements included therein. The interim results should not
be considered indicative of the annual results.

Property and Equipment
----------------------

The Partnership does not have an interest in any property or equipment.








                                       3
<PAGE>
PART I - Item 2.  Management's Discussion and Analysis of Financial Condition
                  -----------------------------------------------------------
                  and Results of Operations
                  -------------------------

Liquidity and Capital Resources
-------------------------------

There were no significant changes as of September 30, 2006 as compared to the
same period in 2005.

Results of Operations
---------------------

As a result of the sale of the Partnership's remaining real estate and the
establishment of a plan of liquidation, the Partnership began reporting on the
liquidation basis of accounting effective May 21, 2004. Therefore, there were no
operations for the nine month periods ended September 30, 2006 and September 30,
2005.

The receivable from affiliates increased approximately $14,000 due to
administrative costs charged associated with winding down the Partnership.
Interest charges associated with the receivable from the affiliate amounted to
approximately $8,000 for the nine months ended September 30, 2006.

There were no significant changes as of September 30, 2006 as compared to the
same period in 2005.

PART I - Item 3. Quantitative and Qualitative Disclosures About Market Risk
                 ----------------------------------------------------------

The Partnership has not entered into any derivative contracts. Therefore, it has
no market risk exposure.

PART I - Item 4. Controls and Procedures
                 -----------------------

Disclosure Controls and Procedures: The Partnership's management, with the
participation of the Partnership's Individual General Partner and Principal
Financial Officer, has evaluated the effectiveness of the Partnership's
disclosure controls and procedures (as such term is defined in Rule 13a-15(e)
under the Securities Exchange Act of 1934, as amended) as of the end of the
period covered by this report. Based on such evaluation, the Partnership's
Individual General Partner and Principal Financial Officer have concluded that,
as of the end of such period, the Partnership's disclosure controls and
procedures are effective.

Internal Control Over Financial Reporting: There have been no changes in the
Partnership's internal control over financial reporting (as defined in Rule
13a-15(f) under the Securities Exchange Act of 1934, as amended) during the
fiscal quarter to which this report relates that have materially affected, or
are reasonably likely to materially affect, the Partnership's internal control
over financial reporting.








                                       4
<PAGE>
PART II - OTHER INFORMATION

Item 1.  Legal Proceedings
         -----------------

As previously reported, the Partnership, as a nominal defendant, the General
Partners of the Partnership and of affiliated public partnerships (the "Realmark
Partnerships") and the officers and directors of the Corporate General Partner,
as defendants, had been involved in a class action litigation in New York State
court. The Partnership's settlement of this litigation is described in its
Annual Report on Form 10-K for the year ended December 31, 2005.

Item 5.  Other Information
         -----------------

         (a) Reports on Form 8-K.

             None.

Item 6.  Exhibits
         --------

         31.   Certification Pursuant to Rule 13a-14(a), as Adopted Pursuant to
               Section 302 of the Sarbanes-Oxley Act of 2002.

         32.   Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
               Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


































                                        5
<PAGE>
                                   SIGNATURES
                                   ----------



Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


REALMARK PROPERTY INVESTORS LIMITED PARTNERHIP - III


              November 14, 2006                /s/ Joseph M. Jayson
              -----------------                --------------------
                     Date                      Joseph M. Jayson,
                                               Individual General Partner and
                                               Principal Financial Officer











































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