Real estate brokers who supported the National Association of Realtors newly adopted policy to regulate how MLS data is displayed on virtual office Web sites are savoring a victory this week while brokers who opposed all or parts of the new policy are voicing their disappointment and one already is refusing to follow the new rules.

RE/MAX International Chairman Dave Liniger said the policy "is a start in the right direction," but it could be years before the VOW controversy works itself out.

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"VOW is just one of dozens of changes that occurred in this industry over the past 30 years. Every time a new change comes along, it unsettles a certain portion of NAR members. There is no unique policy that will make everyone happy," he said.

Liniger said MLSs are owned by brokers and RE/MAX doesn't "dictate" to its franchisees whether they should opt in or out of allowing their listing data to be included in competitors' VOWs.

"The fundamental principle is who owns the information. It's not the public, NAR or the MLS. The giants in the industry built big companies because they know how to run a business efficiently. The rule protects the small and big (brokerages and) gives everyone the right to determine what to do with their listings," he said.

Cendant Real Estate Services Division Chairman and CEO Richard Smith also expressed support for the VOW proposal.

"We strongly support the VOW policy that was ratified and adopted by the National Association of Realtors," he said.

MLSs and VOW operators now have guidelines on the configuration of VOWs and enforcement of the VOW rules, but the promulgation of model MLS rules is far from being the end of the debate. The rules are tricky to interpret and brokers who don't like the rules may be looking for loopholes to protect or advance their own business models.

NAR 2003 President Cathy Whatley in a press statement issued earlier this week positioned the VOW policy as being beneficial for consumers. She said the policy will enable consumers to view "virtually the same information about residential property that professionals use." She also said the policy "protects the integrity" of MLS data, "respects sellers' rights to privacy and maintains the viability of the MLS system."

Virtual online brokerage pioneers eRealty and zipRealty disagree with consumer-friendly characterization of the VOW policy. ERealty CEO Russell Capper said the policy and particularly the selective broker opt-out mechanism will let brokers curtail consumers' online access to for-sale home listing data.

The policy is "a huge loss for consumers," he said.

He said the VOW policy threatens to harm the MLS' efficiency as the "world's most effective marketing exchange" by potentially limiting consumers' access to MLS data. He accused NAR of "caving in" and endorsing a policy that protects big brokers' interests and tries to "cripple" non-traditional brokerages' business models.

ERealty operates multiple VOWs that give Yahoo! users access to MLS data through a deal between the two companies.

Capper said Cendant Corp. and RE/MAX International, which supported the NAR VOW policy, were "lobbying for and got a tool to protect their financial interests, not the interests of their clients."

ZipRealty Marketing VP Pat Lashinsky didn't name names, but he also said the opt-out provision could cut off consumers' access to listing data. He said prospective home buyers and agents in some areas might have to "work harder" to get access to MLS information.

"(The policy) is a step back technologically," he said.

Lashinsky believes brokers will continue to support the MLS and will allow their listings to be included in VOWs, but for now it's a wait-and-see situation.

Michael Davin isn't willing to wait. The EVP of Hermosa Beach, Calif.-based CataList Homes believes his competitors will use the selective opt-out clause to punish discount brokers who operate controversial business models.

"Our company will not comply with the VOW guidelines broker opt-out provision," he said.

CataList charges a 3 percent commission to represent home sellers only in its high-priced housing markets. Davin recently admitted the company is violating MLS' Internet data exchange (IDX) rules because he thinks competitors have conspired to withhold their listing from the discounter's Web site.

"This issue will play out over many years to come. Unfortunately, millions of dollars in legal fees will be wasted," he said.