AB 723 is a California law that requires disclosure when digitally altered images are used in real estate advertising. The law applies to licensed real estate brokers and salespersons, or anyone acting on their behalf, who use images that materially alter the appearance of a property.

The disclosure requirements take effect on January 1, 2026.

AB 723 applies to:

• MLS Participants (brokers)

• MLS Subscribers (salespersons)

• Any person or vendor acting on behalf of a licensee

Responsibility ultimately rests with the licensee, even if a third party created the image.

A digitally altered image is a still photograph that has been modified using photo-editing software or artificial intelligence to add, remove, or change physical elements of the property.

Examples include:

• Virtual staging (adding or removing furniture)

• Changing flooring, walls, cabinets, or paint

• Altering landscaping or exterior features

• Modifying views, backgrounds, or surroundings

• AI-generated enhancements that change the appearance of the property

Disclosure is not required for ordinary photo adjustments that do not materially misrepresent the property, such as:

• Brightness or lighting correction

• Color balance or exposure adjustment

• Cropping or straightening

• Sharpening or resolution enhancement

When a digitally altered image is used:

• A clear and conspicuous disclosure must appear on or immediately adjacent to the image stating that it has been digitally altered.

• Acceptable examples include:

  • “Digitally altered image”

  • “Virtual staging – image has been digitally modified”

  • “AI-generated image for illustrative purposes”

Yes, when the image is posted on a website controlled by the licensee, the original unaltered image(s) must also be made available by:

• Displaying the original image alongside the altered image, or

• Providing a clearly labeled, publicly accessible URL or QR code linking to the original images

AB 723 applies to advertising and promotional materials created by or on behalf of a licensee.
Whether and how the disclosure appears within the MLS platform may depend on MLS rules and technical capabilities, but licensees remain responsible for compliance with state law.

Participants and Subscribers should follow MLS guidance as it is issued.

No. AB 723 does not prohibit virtual staging, AI-generated images, or digital enhancements.
It requires transparency and disclosure so consumers can distinguish illustrative images from actual conditions.

Yes. AB 723 applies broadly to advertisements and promotional materials, including:

• Brokerage and agent websites

• Social media posts

• Email marketing

• Flyers, brochures, and digital ads

AB 723 is part of the Business & Professions Code and is enforceable through existing real estate licensing and consumer protection mechanisms.

MLSs do not enforce state law, but may adopt rules or guidance to support compliance.

Participants and Subscribers should:

• Review current marketing practices

• Educate agents and staff on disclosure requirements

• Coordinate with photographers, stagers, and AI vendors

• Watch for additional guidance from C.A.R. and their MLS

No. This FAQ is provided for general informational purposes only.
Participants and Subscribers should consult legal counsel or C.A.R. legal resources for advice specific to their situation.