California AB 723: What Real Estate Agents Need to Know About Photo Disclosure (2026)

The Transparency Revolution in Real Estate

If the past two years have taught us anything, it's that the real estate industry is undergoing a fundamental shift toward transparency. The 2024 NAR settlement didn't just change how commissions are disclosed—it signaled a broader cultural transformation in how we communicate with buyers and sellers.

Now, California is leading the next wave with Assembly Bill 723, a new law requiring disclosure of digitally altered listing photos. For agents who've built their marketing around virtual staging, twilight conversions, and enhanced photography, this might feel like another compliance burden. But here's the truth: transparency isn't your enemy—it's your competitive advantage.

The agents who thrive in this new environment won't be those who avoid enhanced photography—they'll be those who embrace it transparently. Modern buyers are sophisticated. They understand that empty rooms photograph poorly. They appreciate seeing what a space could look like. What they don't appreciate is feeling deceived.

What is California AB 723?

California's Assembly Bill 723—often called the "Altered Image Law"—takes effect January 1, 2026. It regulates how digitally altered real estate photographs can be used in advertising, including MLS listings.

Important distinction: This is a California state law, not a federal regulation. However, given California's influence on national real estate practices, many industry observers expect similar laws in other states within 2-3 years.

Core Requirements Under AB 723

1. Disclosure Requirement: Any materially edited image must be clearly disclosed as "digitally altered" or "virtually staged" near the image.
2. Original Image Availability: The original, unedited photo must be available and paired with the altered version—either immediately before/after it in the MLS sequence, or via a clearly referenced link or QR code.
3. Applies Everywhere: These requirements apply to MLS listings AND downstream displays including IDX sites, VOWs, third-party portals (Zillow, Redfin, Realtor.com), print materials, and social media.

What Requires Disclosure?

Understanding what triggers disclosure requirements is crucial. The law distinguishes between "material alterations" that require disclosure and "standard corrections" that don't.

Requires Disclosure (Material Alterations)

Does NOT Require Disclosure (Standard Corrections)

• Brightness/exposure adjustments: Making a dark room brighter
• Contrast adjustments: Improving tonal range
• White balance correction: Fixing color temperature
• Minor color tweaks: Slight saturation or vibrancy adjustments
• Cropping: Changing image composition
• Lens distortion correction: Straightening curved lines
• Noise reduction: Cleaning up grainy images

How to Comply: MLS vs Print

AB 723 provides different compliance pathways depending on where you're using the altered images.

For MLS Listings (Strictest Requirements)

California MLSs (CRMLS, SDMLS, SFAR, BAREIS, etc.) are implementing rules that go beyond the minimum statute requirements:

1. Upload both images: Include the original AND altered version in your photo set
2. Adjacent placement: The original should appear immediately before or after the altered image
3. Clear labeling: The altered image must be labeled in the photo description (e.g., "Digitally Altered" or "Virtually Staged")

For Print Materials (Flyers, Mailers, Magazines)

Print materials offer more flexibility:

• Add clear disclosure text: "Image has been digitally altered" or "Virtually staged" near the image
• Include QR code or URL: Link to a gallery of all original, unaltered photos
• One QR for all originals: A single QR code linking to a complete gallery of originals is acceptable

Example disclosure for print: "Image has been digitally altered. Scan QR code for original photos."

How California MLSs Are Implementing

Each California MLS is updating their rules to incorporate AB 723. Here's what we're seeing:

CRMLS (California Regional MLS)

• New "Digitally Altered Images" policy effective January 2026
• Requires labeling AND side-by-side original images
• Photo description field must include disclosure language

SDMLS (San Diego MLS)

• Similar implementation to CRMLS
• Training webinars being offered to member agents
• Updated photo upload interface with disclosure checkboxes

SFAR / BAREIS (Bay Area)

• Guidance emphasizes original image must appear in listing
• QR-only approach may not satisfy MLS rules even if it meets statute
• Recommends conservative interpretation

Pro tip: Check with your specific MLS for their exact implementation. Rules may vary slightly, and some are still finalizing their 2026 policies.

Penalties for Non-Compliance

The stakes for non-compliance are significant:

MLS Violations

• Fines starting at $500-1,000 per violation (varies by MLS)
• Escalating penalties for repeat violations
• Potential suspension of MLS access
• Listings may be flagged or removed until compliant

Legal Exposure

• Business & Professions Code §10140.8: Misleading advertising violations
• Potential buyer lawsuits if they claim material misrepresentation
• License complaints to DRE (Department of Real Estate)
• E&O insurance implications

Building a Compliant Photo Workflow

The good news? Compliance doesn't have to slow you down or increase costs. With the right workflow, you can enhance your marketing and stay fully compliant.

Step 1: Always Start with Quality Originals

Before any enhancement, ensure you have high-resolution original photos. These will be required alongside any altered versions. Take multiple angles of each room—you'll need options for the MLS sequence.

Step 2: Use AI Tools for Fast, Affordable Enhancement

This is where modern AI tools become invaluable. Traditional staging and professional photo editing are expensive and time-consuming. AI-powered tools let you:

• Virtually stage empty rooms in 30 seconds for $0.29 per image—compared to $6,000+ for traditional staging
• Convert daytime exteriors to twilight instantly—no photographer scheduling, no weather dependency
• Declutter occupied homes digitally—no awkward conversations with sellers about removing personal items

Because you already have the original photo (you uploaded it), compliance is built into the workflow. You automatically have both versions ready for MLS upload.

Step 3: Organize Photos for MLS Upload

Structure your photo set with compliance in mind:

1. Lead with your strongest original photo
2. Follow immediately with the enhanced version (clearly labeled)
3. Repeat for each room you've enhanced
4. Include additional original-only photos for rooms you didn't enhance

Step 4: Prepare Print Materials

For flyers and marketing materials:

1. Add disclosure text near each altered image
2. Generate a QR code linking to your original photos gallery
3. Host originals on your website or a dedicated landing page

Frequently Asked Questions

Does this law apply if I'm not in California?

AB 723 is a California state law, so it only applies to listings in California MLSs. However, if you list properties in California from another state, you must comply. Additionally, industry observers expect other states to adopt similar laws within 2-3 years.

Can I still use virtual staging?

Absolutely! AB 723 doesn't prohibit virtual staging—it just requires disclosure. You can (and should) continue using virtual staging to market empty properties effectively. Just label staged photos and include the originals.

What about sky replacements and twilight photos?

Yes, these require disclosure. The law covers "elements outside of, or visible from, the property," which includes the sky. If you convert a daytime photo to twilight or swap an overcast sky for blue sky, label it as digitally altered and provide the original.

Does removing a car from the driveway require disclosure?

Yes. Object removal—including cars, trash cans, power lines, or personal items—is considered a material alteration that can affect a buyer's perception of the property or neighborhood.

What about basic brightness and color corrections?

Standard global adjustments (brightness, contrast, white balance, minor color tweaks) are generally NOT considered material alterations and don't require disclosure. These are considered normal photographic corrections.

Can I use one QR code for all my original photos?

For print materials (flyers, mailers), yes—a single QR code linking to a gallery of all originals is acceptable. However, for MLS listings, most California MLSs require the original to appear directly in the listing adjacent to the altered version. A QR-only approach may not satisfy MLS rules.

What if I'm using a photographer who edits the photos?

As the listing agent, you're responsible for compliance. Work with your photographer to understand what edits they make, and ensure you receive both original and edited versions. Include this requirement in your photographer contracts.

Does this apply to video and virtual tours?

The law's language focuses on "photographs," but enhanced or virtually staged video content should likely be disclosed as well. Check with your MLS for specific guidance on video and 3D tour requirements.

When exactly does the law take effect?

January 1, 2026. Any listings active on or after this date must comply, including listings originally published in 2025 that remain active into 2026.

The Bottom Line: Transparency is Your Advantage

AB 723 might seem like another regulatory hurdle, but it's actually an opportunity. Here's why:

• Trust is currency: Buyers who feel informed become buyers who feel confident. Confidence closes deals.
• Differentiation: While competitors scramble to comply, you can lead with transparency as a selling point.
• Protection: Clear disclosure protects you from misrepresentation claims down the road.
• Better marketing: When buyers know a photo is staged, they focus on the space's potential rather than trying to "catch" edits.

The agents who thrive in 2026 won't be those who avoid enhanced photography. They'll be those who embrace it openly, use efficient tools to keep costs low, and make transparency part of their brand.

Whether you're staging empty rooms, converting exteriors to twilight, or decluttering occupied homes, modern AI tools make compliance easy. You get both versions instantly, your costs stay under $1 per image, and you're ready for any MLS upload or print campaign.

The future of real estate marketing is enhanced, disclosed, and transparent. Are you ready?