FrontDoor.com

A history of pushy sales tactics and shady deals has given time shares a bad reputation in the past, but lately the industry has made a concerted effort to turn over a new leaf. According to the American Resort Developers Association, more than 3 million U.S. households currently own time shares, and nearly 85 percent of owners responding to a 2002 survey said they were satisfied with their purchase.The term "time share" actually encompasses two distinct forms of vacation ownership. In some cases, buyers acquire deeded ownership of a house or condominium for a specified period of time each year, while other deals involve buying intervals of time at a resort without actually holding a deed to the property.

Technicalities aside, all time-share owners must fork out annual maintenance fees to a management company, and most contracts allow you to trade for time at other resort destinations.

Although time shares may be bought and sold like any other form of personal property, the Federal Trade Commission warns that sellers typically get less than the original price, so brace yourself for what could be a considerable loss if you have a change of heart.

The FTC also emphasizes that buyers should never sign a time-share contract before thoroughly evaluating the obligations and benefits of ownership. Shop carefully, however, and time shares can be a smart way to pay upfront for future getaways.

Another form of shared ownership is to buy a vacation property jointly with a friend or relative. Pooling resources is not a bad idea if your relationship with your sibling or fishing buddy is on solid footing. Just make sure you have a clearly written contract that spells out the details of the partnership and stipulates exactly what will happen if either party wants out of the deal.

<< How will a second home affect your taxes? I Where's a good place to buy? >>

GO TO: Experienced Homebuyer's Guide

Read the Top 10 Things to Know About Buying a Second Home

1. Resist the urge to impulse buy
2. Evaluate your needs and long-term goals
3. Get to know the area before buying
4. Hire a local real estate agent
5. Decide what type of home is right for you
6. Shop around for a mortgage
7. Calculate additional expenses
8. Consider fractional ownership to cut down on costs
9. Look into tax benefits
10. Rent your home out for extra income

More on FrontDoor:

• FrontDoor's Top 10 Tips and Advice on Everything Real Estate
• Search Homes for Sale
• First-Time Homebuyer's Guide
• Explore Cities Across America
• Waterfront Living Guide
• Luxury Living Guide