Related Party Transactions

3 Months Ended

Mar. 31, 2014

(4)	Related Party Transactions

The Corporate General Partner and its affiliates earn fees, principally for property and partnership management and are reimbursed for services rendered to the Partnership, as provided for in the partnership agreement. A summary of those items for the quarter ended March 31, 2014 and 2013 is as follows:

	2014		2013
Property management fees based on a percent-
age (generally 6%) of the rental income	$	6,387	$	5,335
Reimbursement for cost of services to the
Partnership that include investor relations,
marketing of properties, professional fees,
communications, supplies, accounting,
printing, postage and other items		3,745		7,500
	$	10,132	$	12,835

In addition to the above, other property specific expenses incurred by affiliates such as payroll, benefits, etc., amounting to $32,981 are charged to property operations on the Partnership’s consolidated statements of operations. Certain payables to affiliated parties are payable on demand and bear interest at 8% in 2014 and 2013.

Payable to Affiliated Parties

Payable to affiliates amounted to $3,616,721 and $3,411,305 at March 31, 2014 and December 31, 2013, respectively. Of this amount, $1,066,719 is payable to an affiliate under a Memorandum of Understanding Agreement dated December 8, 2006. Under the terms of this agreement, the Partnership agrees to repay this loan plus interest at a rate of 8% per annum, upon the sale of the remaining building at Commercial Park West, 2327 Englert Drive, which is currently being marketed for sale. As of March 31, 2014 and December 31, 2013, accrued interest from this agreement, totaled $612,655 and $591,529, respectively. J.M. Jayson & Company, Realmark Properties, Inc. and other subsidiaries of J.M. Jayson and Company have advanced additional amounts to the Partnership and deferred collection of amounts owed for services to fund working capital needs. These advances bear interest at the rate of 8% and amount to $1,947,763 and $1,763,473 as of March 31, 2014 and December 31, 2013, respectively, including accrued interest. Included in payable to affiliates at March 31, 2014 is $99,600 that was borrowed from an affiliate to settle a note payable to a third party. The third party note and accrued interest aggregating to $121,274 at December 31, 2013 were settled for payments aggregating $99,600, resulting in a gain of $21,674, included in other income. The advance does not bear interest. Total interest expense incurred on amounts owed to affiliated parties for the quarters ended March 31, 2014 and 2013 was $50,439 and $88,008, respectively.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

REALMARK PROPERTY INVESTORS LTD PARTNERSHIP V 10-Q