California AB 723: AI Photo Disclosure Rules for Real Estate Listings

Section 10140.8 applies to:

• a California real estate broker
• a California real estate salesperson
• a person acting on behalf of the broker or salesperson

The covered activity is including a digitally altered image in an advertisement or other promotional material for the sale of real property.

That can include work performed by:

Using an outside vendor does not remove the broker's or licensee's need to review the final advertising.

The enacted AB 723 language is written for advertising or promotional material involving the sale of real property.

Do not automatically describe AB 723 as a rental-listing law.

California Assembly Bill 2025 was introduced in 2026 to propose a similar disclosure framework for rental advertising. Before publishing, verify AB 2025's current official status.

A separate proposal, AB 2025, would extend a related framework to rental advertising, but a pending bill is not current law. Check its official status before relying on it.

AB 2025 remains pending as of this guide's publication date. Review the official California AB 2025 status page for the current status before relying on any summary.

AB 723 defines a digitally altered image broadly. It covers an image created by or at the direction of the licensee or someone acting on their behalf that has been altered through photo-editing software or artificial intelligence to add, remove or change elements.

The statute's examples include:

• fixtures
• furniture
• appliances
• flooring
• walls
• paint color
• hardscape
• landscaping
• the facade
• floor plans
• streetlights
• utility poles
• views through windows
• neighboring properties

The list is not limited to those examples.

Practical examples

This table is an AIandRealtors.com editorial interpretation for workflow planning. The official statute controls.

AB 723 excludes an image when the only changes are common photographic adjustments that do not change the representation of the property.

The statute identifies:

• lighting
• sharpening
• white balance
• color correction
• angle
• straightening
• cropping
• exposure
• similar common corrections

The important limit is not merely the name of the editing tool. The correction must avoid changing how the real property is represented.

A brightness adjustment that makes a dark room easier to see is different from removing visible damage, replacing an exterior view or making unfinished work appear complete.

For a covered digitally altered image, the advertisement or promotional material must include:

1. 01A statement disclosing that the image has been altered.
2. 02A link to a publicly accessible website, URL or QR code.
3. 03A source that includes and clearly identifies the original, unaltered image.
4. 04Language explaining that the original can be accessed through that website, URL or QR code.
5. 05A reasonably conspicuous statement on or adjacent to the altered image.

That means the disclosure should travel with the asset where consumers actually encounter it.

Do not assume that a general disclosure at the bottom of a listing page satisfies an image-level requirement.

No. A QR code is one of the options expressly recognized by the statute.

The original may be made available through:

• a publicly accessible website
• a public URL
• a QR code linking to a publicly accessible source

The original image must be included and clearly identified.

A broken link, password-protected page or link that does not clearly identify the matching original would undermine the purpose of the requirement.

When covered advertising is posted on a website controlled by the broker, salesperson or someone acting on their behalf, the posting must include the unaltered version of the images from which the altered images were created.

The statute permits compliance through a link to a publicly accessible website that includes and clearly identifies the original.

A practical controlled-site workflow is:

• display the altered image
• label it on or adjacent to the image
• show the corresponding original nearby or provide a direct public link
• identify which original matches which altered image
• test the link from a logged-out browser
• retain the original and final files

California's statute describes what the disclosure must accomplish, but it does not provide one universal sentence that is guaranteed to fit every image, platform or MLS.

The following are editorial starting points, not statutory safe harbors:

Virtually staged / digitally altered image. View the original, unaltered image here: [public URL or QR code].

For a more substantial conceptual change:

Digitally altered concept image. This image does not show the property's current condition. View the original, unaltered image here: [public URL or QR code].

For furniture removal followed by staging:

Furniture has been digitally removed and the room has been virtually staged. View the original, unaltered image here: [public URL or QR code].

Before using any wording:

• confirm the local MLS label requirements
• confirm the brokerage's preferred language
• confirm that the original link works publicly
• make the statement visible with the image
• avoid shrinking the notice until it is practically unreadable

The California Department of Real Estate published its advisory, Artificial Intelligence in California Real Estate — Opportunities, Risks, and Compliance Considerations for Licensees, on March 17, 2026.

DRE explains that AI does not change several existing responsibilities:

• brokers must reasonably supervise activities conducted under their licenses
• licensees remain responsible for professional judgment
• AI output should be independently reviewed
• advertising must remain truthful, accurate and non-misleading
• required license and brokerage disclosures still apply
• altered-image duties still apply
• Fair Housing and fair-lending requirements still apply
• consumer information and confidential data require care
• AI-generated legal explanations do not replace qualified legal advice

DRE's practical message is direct: an inaccurate or misleading AI output remains the responsibility of the licensee and responsible broker, not the software provider.

California brokers should consider documenting:

• which AI tools are approved
• who may upload listing media
• what edits are permitted
• which edits require broker review
• approved disclosure language
• where original images must be stored
• how public original-image links are maintained
• who approves final MLS and portal uploads
• how long original and final assets are retained
• how client and transaction data may be used in AI tools

A written process is more defensible than leaving every agent to create a separate disclosure workflow.

CRMLS published Digitally Altered Image Guidance and FAQs for its subscribers.

CRMLS instructs users to:

• identify a digitally altered image as digitally altered, virtually staged or with another appropriate label
• include the original, unedited image in the listing
• place the original immediately before or after the altered image

That is an important operational requirement for CRMLS users.

It should not be presented as the universal image-order rule of every California MLS.

Agents outside CRMLS must review their own MLS rulebook and guidance.

A state-law disclosure does not automatically satisfy every MLS rule.

A local MLS may separately regulate:

• image labels
• photo order
• image descriptions
• virtual staging
• removal of fixtures or defects
• conceptual renovation images
• branded or unbranded media
• video overlays
• music
• watermarks
• exterior or neighborhood alterations

Use the stricter applicable workflow when the state rule, local MLS rule and brokerage policy differ.