The core subject on the table is money, but you would hardly know that listening to industry discussions concerning listings and the Internet.

Since January, local MLS systems affiliated with the National Association of Realtors have been required to adopt Internet Data Exchange (IDX) protocols, standards which allow MLS members to post local listing data on their sites.

The logic for such postings is fairly clear: In pre-Internet days MLS brokers would routinely show listings from all MLS members to prospective buyers. If broker Smith listed a property and placed it in the MLS system, member broker Jones could show it to would-be purchasers. If Jones "introduced" a property to a ready, willing, and able buyer then Jones could be entitled to a commission in the event of a purchase.

Under the old process of listing and marketing, no one pretended that Smith was obtaining "free" advertising. Instead, the arrangement was clear: Jones wanted buyers for the Smith listings because Jones fully expected compensation if a deal was struck.

IDX protocols largely extend pre-Internet methods to the Web. They allow members of local MLSs to post system listings online and to obtain compensation if they obtain a purchaser. Importantly, under the IDX conventions a broker who does not want listings distributed online may opt out of the system.

With IDX, buyer Green can search an MLS member website for local MLS listings -- perhaps not all local listings because IDX has an opt-out provision for brokers -- but the listings held by the site-owning broker and listings from other brokers as well. Green need not register on the site, the listings are simply there. And while some information for a property appears, much of it remains confidential and is not shown. For further information, Green needs to contact a broker.

With a VOW (Virtual Office Website) the arrangement is different. Consumers cannot merely browse listings anonymously -- they must register with the broker who operates the site.

Since a consumer must register with a VOW to see MLS data, the broker now has contact information. Several steps will likely occur with registration:

• The consumer will be shown the site's privacy policies -- a general requirement for online sites.

• The consumer will be required to accept a site user agreement establishing who owns the data and other matters.

• The relationship between the consumer and the broker will be established with appropriate agency disclosures -- the web visitor will now become a "client" represented by the VOW broker, a "customer" who is not represented, or something else according to what is allowed by state law.

Once identified and categorized, the prospective buyer is then given access to search the VOW database within certain parameters, say homes in a given community selling between $300,000 and $400,000.

Unlike IDX, extensive information for each property is displayed. If a client buyer enters into a transaction, the VOW broker/owner likely has grounds to collect a fee.

Also unlike IDX, VOWs do not allow opting-out -- all MLS member brokers must participate. This requirement has raised an argument with some saying compulsory participation is reasonable while others argue that it is unfair.

Why unfair? Because if VOW participation is mandatory, it means those with listings must place their inventory on the system, thus driving business and traffic to competitors. This is the equivalent of saying Sears must allow WalMart to sell inventory that Sears has purchased. You can bet Sears would object, and so do many brokers with listing inventories.

While IDX has now been mandated by NAR for member MLS systems, the nature and requirements for VOWs have not been determined.

What questions remain? A bunch, including these:

• If you're a broker, does a VOW move traffic to your site or away?

• If you're a large listing broker, how do VOWs impact revenues generated by your inventory?

• What anti-trust questions arise if MLS members are required to participate in VOWs?

• If listing brokers can be required to place properties on a VOW, should buyer brokers be required to place purchaser information on the system?

• Would it make sense to have a VOW where MLS members can opt out?

• Why should Homestore and Homeadvisor pay for listings if other sites can obtain them without cost through a VOW? Or, seen the other way, why shouldn't all non-member MLS sites pay to access MLS listings?

• Suppose a newspaper becomes a licensed real estate broker, joins a local MLS, and then posts a VOW online. Instead of billing for classified ads, will the paper now charge referral fees -- a far-higher cost?

• Would it make sense for a company to obtain realty licenses in 50 states, join the 100 largest MLS systems, and then create a national real estate website? In practice, how would such a system differ from a national MLS?

• If VOW standards are adopted, will MLS systems not affiliated with NAR spring up, systems that do not have a VOW requirement for members?

Discussions regarding VOWs remain ongoing and what will be concluded is unknown at this time. That said, one point seems clear: Few listing brokers will accept any VOWs that require mandatory participation.

For more articles by Peter G. Miller, please press here.