Real estate, however, is not a book or an airline ticket. It is something far more complex -- no one lists ownership of a book in public records or pays for an airline ticket over 30 years. A home is intrinsically an "investment" and we certainly regulate other investments such as stocks and bonds -- though not very well if ongoing headlines are to be believed. The stakes in every real estate transaction are significant, thus as a matter of public policy we have extensive regulation in every state to protect the public interest.

The concern for state regulators is not directly whether they will or will not allow VOWs. The core issues are different: If VOWs are permitted, how can agency relationships be created online while protecting consumer interests? Should online listing and buyer brokerage agreements be allowed at all?

A recent report by attorneys Miriam J. Baer and Thomas R. Miller (no relation) is instructive. Baer is the assistant director of the Legal Services Division of the North Carolina Real Estate Commission while Miller is the legal counsel to the Commission and the 2002-2003 Chair of the ARELLO Law Committee. ARELLO is the Association of Real Estate License Law Officials, a group which includes virtually all U.S. real estate regulators as well as regulators from Canada and other nations.

What's notable about the Baer/Miller report is that it concisely outlines the issues state regulators are likely to raise in the coming year. The fact that NAR has a policy does not automatically mean the association's preferences and approaches will be accepted in all states -- or in any.

So what questions might regulators ask? Here is the list I see emerging from the Baer/Miller report:

1. Do state laws allow the creation of instant online agency relationships? If yes, what standards are required to protect consumers? State laws, for example, routinely prohibit harmful practices -- "net" listings are one example, listings which allow brokers to collect huge fees from owners who are unaware of how much their property is worth.

2. At what point in the VOW process are brokers required to provide "agency" disclosures -- information to buyers and sellers explaining what brokers do and who they represent?

3. What evidence is required to show that consumers are making an informed decision regarding the purchase of agency services?

4. What paper-based trail should be required for licensees in the event of a dispute with a consumer? What about a paper trail for regulatory audits?

5. Must agency agreements be negotiated online or will brokers be able to set contract terms by using form agreements with such items as commission percentages and agreement lengths already filled in?

6. How do identity theft, spoofing and online fraud impact VOWs?

7. Is a VOW "advertising" for regulatory purposes? According to Baer/Miller, NAR "takes the position that IDX involves advertising, subject to special government regulations, while the VOW, in NAR's view, is not advertising. This stance has been quite controversial. Indeed, some states have already disagreed. According to NAR, both Wisconsin and Arizona have opined that the VOW is 'advertising.' This distinction matters especially for states whose law and/or rules require licensees to obtain express permission before advertising another licensee's listing. It is also important to licensees and regulators in states with strict regulatory requirements for the content and form of real estate advertising. In those states, reconciliation of NAR's VOW Policy with state rules may be very difficult."

8. Should state regulations prohibit MLS brokers from opting out of VOW arrangements? If yes, can state regulators require that property owners who list homes with MLS-member brokers participate in VOW marketing?

9. What advertising, if any, can surround a VOW listing? For instance, can local VOW information be used on the website owned by someone who is not a local MLS member?

10. Are VOW "terms of use" consistent with state rules and regulations?

11. Do consumers understand that the commitment made on a VOW site by pressing an "I accept" button may be substantially unlike the commitment made by pressing routine "I accept" buttons on non-real estate sites?

12. Who is responsible for a VOW website operated by a real estate salesperson? Real estate rules require salespeople to work under the authority of a broker, thus a broker may be responsible for the content of a salesperson's website.

13. Can a VOW website, or any broker website, collect consumer data and sell it to other brokers, moving companies, lenders, etc? If yes, what permission -- if any -- is required from consumers? What is the difference between selling consumer data and seeking a referral fee from another broker?

14. Which rules apply to VOW sites? If a broker is licensed in Missouri and a buyer is located in Iowa, which state standards must be used for an online agreement? Can the Missouri broker sue to collect a fee from the consumer if the broker is not licensed in Iowa?

In the end, what regulators want are policies and practices which protect the public interest. NAR has spoken, various interest groups with positions pro and con have offered their views and now it's time for regulators to make the hard decisions.

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