Starting January 1, a new California law is changing how real estate photos are presented to buyers. The goal is simple: improve transparency and reduce confusion caused by heavily altered listing images.

Under Assembly Bill 723, real estate professionals must clearly disclose when listing photos have been digitally altered using editing software or artificial intelligence. This requirement applies across California and affects how homes are marketed online and in print.

What the Law Requires

If a listing photo has been digitally modified in a way that changes how the property is represented, the image must include a visible disclosure stating that it has been altered. This applies to marketing materials such as online listings, digital ads, brochures, and other promotional content.

In addition, agents must make the original, unaltered photo available to the public. This can be done by displaying it next to the edited image or by providing access through a QR code or website link.

What Counts as a Digital Alteration

The law focuses on edits that add, remove, or change physical elements of a property. Examples include:

○ Virtual staging with furniture or décor

○ Changing or adding fixtures, appliances, or cabinetry

○ Modifying flooring, walls, paint colors, or exterior features

○ Altering landscaping, views, or neighboring structures

 

These types of edits materially change how a home appears and therefore require disclosure.

On the other hand, common photo adjustments such as cropping, straightening, color correction, lighting balance, or exposure tweaks are still allowed without disclosure, as long as they do not misrepresent the property.

What the Law Does Not Cover

The new rules apply only to edits made after a photo is taken. As a result, techniques such as wide angle lenses that can make rooms appear larger are not addressed. The law also does not restrict standard photo enhancement practices that have long been used in real estate marketing.

Why This Law Matters

Advances in artificial intelligence have made it easier than ever to dramatically alter listing photos. While tools like virtual staging can be helpful, they can also create unrealistic expectations when used without context or disclosure.

This law aims to set a consistent standard statewide, ensuring buyers know when they are viewing an enhanced image rather than a true representation of the home. It also creates clearer expectations for agents, photographers, and brokerages operating across different markets.

California is the first state to implement a disclosure requirement of this kind for real estate photos, positioning it at the forefront of regulating AI driven marketing practices in the housing industry.

How Listings Will Appear Online

Multiple Listing Services across California are updating their platforms to comply with the new law. In many cases, agents will be able to flag an image as digitally altered during upload, triggering a visible watermark or label on the photo. These disclosures are expected to carry through to major consumer platforms such as Zillow and Redfin.

As these systems roll out, buyers should begin to see more consistent labeling across listings.

Enforcement and Compliance

The law does not specify automatic fines or penalties for noncompliance. However, violations fall under the authority of the California Department of Real Estate, which has the ability to take disciplinary action depending on the severity of the issue.

For real estate professionals, the safest approach is clear and proactive disclosure. Over transparency helps protect both consumers and agents while building trust in the transaction process.

What This Means for Buyers and Sellers

For buyers, this change provides more clarity when browsing listings online and helps reduce surprises during in-person showings.

For sellers, it encourages marketing that is compelling but honest, ensuring interest is built on accurate expectations rather than visual exaggeration.

At Stuecher Manning Group, we support thoughtful, transparent marketing that reflects the true value of a home. As technology evolves, clear communication and trust remain at the foundation of successful real estate transactions.

----------

Source: sfchronicle.com