Beginning January 1, 2026, California's new AB 723 will require real estate brokers and agents to clearly disclose when marketing images have been digitally altered — and to provide buyers access to the original, unaltered versions.
The law distinguishes between acceptable standard photo edits (like white balance and exposure) and alterations that change the representation of real property (like adding grass, removing wires, or virtual staging).
Open Homes is preparing now so you’ll be ready: we’ll clearly label altered vs. unaltered images in your Media Manager, provide both versions in our delivery system, and develop property website tools to simplify disclosure requirements.
Key takeaways:
- Effective Date: January 1, 2026
- Applies to: real estate agents, brokers, developers, and marketing staff involved in property advertising
- The bottom line: Any “digitally altered” ( AI-generated or typical software edited) photo must include a clear disclosure and access to the original version
- The goal: Promote accurate, transparent real estate marketing and reduce consumer deception claims related to images (expanding NAR art 2, 12)
- Why compliance matters: violations fall under Real Estate Law; willful violations are crimes.
What We Know: Understanding AB 723
While AB 723 is brief, the implications are significant. It amends the California Business and Professions Code by adding Section 10140.8, creating disclosure requirements for digitally altered real estate images.
(b) (1) For purposes of this section, “digitally altered image” means an image, created by or at the direction of the real estate broker or salesperson, or person acting on their behalf, that has been altered through the use of photo editing software or artificial intelligence to add, remove, or change elements in the image, including, but not limited to, fixtures, furniture, appliances, flooring, walls, paint color, hardscape, landscape, facade, floor plans, and elements outside of, or visible from, the property, including, but not limited to, streetlights, utility poles, views through windows, and neighboring properties.(2) “Digitally altered image” does not include an image where only lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure, or other common photo editing adjustments are made that do not change the representation of the real property.
What we're doing
Open Homes is committed to making compliance simple, transparent, and built into your existing workflow.
- We've paused sky replacements on all images in favor of sky corrections only. This means that we won't provide blue or twilight sky replacements on photos shot on gloomy or over cast days as some brokerages & MLS' have deemed these alterations. You can still request sky replacements free of charge after photos have been returned.
- Delivering Altered + Unaltered Images Clearly Labeled in your media manager
- Providing Both Versions for Any Altered Image
- Open Homes Property Websites Built for Supporting Disclosures (demo example here)
What you need to do
CAR® suggests checking with your broker of record AND MLS to find out what they are considering "Digitally Altered Images" and how they feel compliance should be maintained. Some MLS' plan to have tools available by February 2026 to help in the disclosure process.
Inform us about what your Brokerage / MLS need for compliance so we can support you.
Stay updated and learn more
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