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




                                    FORM 8-K


                                 CURRENT REPORT


                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

         Date of Report (Date of earliest event reported) December 21, 2005

                        CONSOLIDATED CAPITAL PROPERTIES III
               (Exact name of Registrant as specified in its charter)


            California                0-10273                 94-2653686
      (State or other jurisdiction  (Commission            (I.R.S. Employer
         of incorporation or        File Number)        Identification Number)
           organization)
                                55 Beattie Place
                              Post Office Box 1089
                        Greenville, South Carolina 29602
                    (Address of principal executive offices)


                                 (864) 239-1000
                           (Issuer's telephone number)

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously satisfy the filing obligations of the registrant under any of the
following provisions:

[ ]   Written communications pursuant to Rule 425 under the Securities Act (17
      CFR 230.425)

[ ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)

[ ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))

[ ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))









Item 1.02   Termination of a Material Definitive Agreement.

Consolidated  Capital  Properties III (the  "Registrant"),  a California limited
partnership,  owns Ventura Landing Apartments  ("Ventura  Landing"),  a 184-unit
apartment  complex  located in Orlando,  Florida.  As previously  disclosed,  on
November 2, 2005, the Registrant and ten other  partnerships  (together with the
Registrant,  the  "Selling  Partnerships"),  entered  into a  Purchase  and Sale
Contract (the "Purchase  Agreement") with a third party, The Bethany Group, LLC,
a  California  limited  liability  company  (the  "Purchaser"),  to sell  twelve
apartment  complexes  and one  parcel of land  (together  the  "Properties"  and
individually a "Property")  owned by the Selling  Partnerships  to the Purchaser
for a  total  sales  price  of  $161,250,000,  of  which  $12,372,449  was to be
allocated to Ventura  Landing.  Each of the Selling  Partnerships  is affiliated
with  AIMCO  Properties,  L.P.,  an  affiliate  of the  general  partner  of the
Registrant.

On December 21, 2005, the Selling Partnerships delivered written notice of their
election  to  terminate  the  Purchase  Agreement  pursuant to its terms and the
Purchase Agreement was thereby terminated.







                                    SIGNATURE


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 hereunto duly authorized.



                              CONSOLIDATED CAPITAL PROPERTIES III


                              By:   ConCap Equities, Inc.
                                    General Partner

                              By:   /s/Martha L. Long
                                    Martha L. Long
                                    Senior Vice President


                              Date: December 30, 2005