Buying a timeshare property can be rewarding for many people. While many people may reap the rich benefits of timeshares there are several others for whom the timeshare investment was nothing more than a mere fraud and dream resorts turned into nightmares. Thus investing in a timeshare should always be done with high alertness and caution. Before signing a contract or a check, always consider both the benefits and the risks involved, and always read the finely written statements before signing a contract.

The timeshares are basically classified into deeded and non-deeded plans. In a deeded plan, an individual buys an ownership in a piece of real estate property. The owner usually gets the title of the property and the property is also inheritable to the heirs of the owner. Where as, in a non-deeded plan or right to use plan, an individual buys a lease, a club membership or a license that lets you use the property for a specific amount of time each year and for stated number of years. But in both the cases the cost of the unit is directly proportional to the season of the year and length of time an individual wants to buy. The rights of the timeshare owner ceases after the lease expires in right to use timeshare.

Buying a timeshare is an important decision and is one not to be rushed into. Read over any documents and contracts very carefully, making sure that you understand all of the terms and conditions spelled out therein. Never sign anything unless you completely understand what you're agreeing to. You may want to have your lawyer look the contract over before signing and you should definitely speak to someone who owns a share in the property. Before you buy a timeshare, keep the following points in mind:

If you are buying a timeshare from a timeshare resale company verify that they are licensed brokers. Easy way to verify this is by asking the license number of the broker. Then you can verify that with the State Department which deals with these kinds of transactions and know about the history of the broker. Be vigilant when you are buying a timeshare from a non-licensed firm, your money would be at stake as the non-licensed firms wouldn't have much to lose, so greater chances of fraud exist.

-Remember that a timeshare is intended as a vacation property, not an investment property and that it is not realistic to expect to make a large return by reselling your timeshare.

-If you are buying a right to use timeshare watch out, if the sponsor declares bankruptcy, you may lose your rights.

-Always get a written agreement from the seller of a timeshare if you're looking at a property which does not yet have installed all of the facilities you've been promised.

-Any claims made by the seller about the returns on the investment in timeshare should be questioned because the future value of a timeshare depends on many factors.

-Do not get impulsive when buying a timeshare. Read each and every paper thoroughly. Take adequate time in researching, analyzing and making a decision to buy a timeshare.

-Never believe in the word of mouth, neither on phone or face to face. Request everything in writing especially the promises that were made orally.

-Think very carefully about buying any timeshare where the company does not guarantee some form of exchange program. Unless you're absolutely sure that you'll want to return to the same vacation spot every time, it may not be a good investment to purchase a timeshare property from a company which does not provide this.