Before you buy your first time share, there are many facts to consider. In calculating the total cost of a time share or vacation plan, you need to include mortgage payments and expenses, travel costs, annual maintenance fees, property taxes, closing costs, broker commissions, and finance charges. It is important to be aware of the fact that maintenance fees can rise at rates that exceed inflation. You should ask whether your plan has a fee cap. You must pay fees and taxes on your time share unit, whether or not you use it yearly.

To help evaluate the time share purchase, compare the previously mentioned costs with the cost of renting similar accommodations with similar amenities in the same location for the same time period. If you determine that purchasing a time share or vacation plan makes financial sense, comparison shopping is your next step.

Start by evaluating the location and quality of the resort, as well as the availability of units. Visit the facilities and talk to current time share owners about their experiences. Local real estate agents also can be good sources of pertinent information, but be aware that it is in their own self-interest to sell you a property which will bring them a commission. If the time share is marketed exclusively by the developer and real estate brokers do not receive any commissions, they will most likely only present negative facts about the resort.

It is also a very good idea to check for complaints about the resort developer and management company with the state Attorney General, the local Better Business Bureau, and any other consumer protection officials.

You should research the track record of the time share developer, seller, and management company before you sign a contract to buy. Ask for a copy of the current maintenance budget for the property. Investigate the resort policies on management, repair, and replacement furnishings, and timetables for promised services.

You'll need to really study to become intimately familiar with all the obligations and benefits of the time share purchase. Is everything the salesperson promises written into the contract? If not, be aware that only the contract counts, and verbal promises mean nothing.

You should never act on impulse or under pressure. Often, limited-time purchase incentives will be offered while you are touring or staying at a resort. While these bonuses may present a good value, the timing of a purchase is your decision. You have the right to get all promises and representations in writing. To repeat: if a promise is not in writing, it is meaningless and unenforceable.

It is wise to tudy the paperwork and contract outside of the presentation environment. If you are not already very familiar with a purchase and sales contract, you should have an attorney who is knowledgeable about contracts and real estate review it before you make a decision.

It is recommended that you get the name and phone number of someone at the time share company who can answer your questions, before, during, and after the sales presentation, as well as after your purchase has been finalized.

Always ask about your ability to cancel the contract, sometimes this is referred to as a "right of rescission." Many states have laws that give you a right of rescission, but the amount of time you have to cancel may vary. State law or your contract also may specify a "cooling-off period". This is a period of time that you have to cancel the deal once you've signed the papers. In many states this period is three business days. If a right of rescission or a cooling-off period aren't required by law, ask that they be included in your contract.

If for some reason you decide to cancel the time share purchase, either through your contract or state law, you need to do so in writing. For legal purposes, send your letter by certified mail, return receipt requested, so you can document that the seller received it. Make copies of your letter and any enclosures, as you may need them at a later date. If the cancellation is done properly, you should receive a prompt refund of any monies you paid, as provided by law.

Use an escrow account if you're buying a time share in a resort that is still under construction, and get a written commitment from the seller that the facilities will be finished as promised according to the blueprints and sales literature. That's one way to help protect your contract rights if the developer defaults and doesn't complete the construction. Make sure your contract includes clauses concerning both "non-disturbance" and "non-performance." A non-disturbance clause ensures that you'll be able to use your time share unit if the developer or management firm goes bankrupt or defaults. A non-performance clause lets you keep your rights, even if your contract is bought by a third party. You may want to discuss these provisions of your contract with an attorney who can provide you with more information.

A final not of caution: be wary of offers to buy time shares in foreign countries. If you sign a contract outside the United States for a time share in another country, you will not be protected by U.S. laws.