Starting January 1, 2026, California is rolling out a new law that fundamentally changes how real estate photos can be used in marketing and listings. Assembly Bill 723 — known in the industry as the Altered Image Law — requires agents, brokers, and anyone advertising property to be transparent whenever an image has been digitally altered. go.crmls.org+1
Why This Matters
In the age of AI tools, virtual staging, and easy photo editing, it’s never been simpler to tweak listing photos. But that creates a risk: buyers could end up with an inaccurate impression of a home before they ever step inside. AB 723 aims to curb misleading visuals by forcing clear disclosure and access to the original, unedited photos. Law Advocate Group, LLP
What Counts as a “Digitally Altered Image”?
Under the law, an image is considered digitally altered if it’s been changed with photo-editing software or AI to add, remove, or change physical elements of a property. That includes things like:
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Adding or removing furniture or fixtures
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Changing paint colors or flooring
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Modifying landscaping or exterior features
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Adding views or altering elements outside the property, like neighboring homes or street features
These edits go beyond simple photo fixes — they change the substance of what a buyer sees. open-homes.com
Important distinction: Basic enhancements that don’t alter the property itself — things like adjusting brightness, contrast, white balance, cropping, or straightening — are not considered altered under AB 723. open-homes.com
What You Must Do to Comply
Image Source from SD | MLS Support
If you include a digitally altered image in a listing or promotional material, you now have two parallel obligations:
1) Label It Clearly
You must include a conspicuous disclosure near the image stating that it has been digitally altered. Simple tags like “Digitally Altered” or “Virtually Staged” work as long as they’re clear to consumers. open-homes.com
2) Provide the Original
You must also make the unaltered, original image available in one of these ways:
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Directly in your listing (if it’s on a site you control), or
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Via a public link, URL, or QR code that leads buyers to the original version.
The disclosure language must also indicate how to access the unaltered image. open-homes.com
How This Interacts with MLS Rules
CRMLS has already updated its internal rules to match AB 723’s definitions. For any MLS photo that’s been altered beyond basic edits, you’ll need to:
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Label the photo as digitally altered or virtually staged
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Include the original photo immediately before or after the altered one in the listing view
If there’s uncertainty whether something counts as an alteration, the safest path is to treat it as digitally altered and disclose it accordingly. CRMLS Knowledgebase
Bottom Line for Agents
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Effective Date: January 1, 2026
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Who Must Comply: Brokers, agents, and anyone marketing listings on their behalf
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Core Rule: Any materially edited image must be labelled and paired with the original
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Purpose: Promote honest, transparent advertising and reduce buyer confusion or misrepresentation claims open-homes.com
This isn’t just about MLS compliance — it affects every place your marketing appears: websites, social channels, print flyers, QR code galleries, and more.
Final Thoughts
AI and digital editing have transformed real estate marketing, but with that power comes a higher standard of transparency. AB 723 doesn’t ban creative images — it ensures buyers know when they’re looking at enhanced visuals versus untouched photos.
If you’re updating your processes for 2026, start by auditing how your photos are edited and labeled today. When in doubt, err on the side of transparency. Clients and regulators alike will appreciate it. Law Advocate Group, LLP
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