What every California realtor needs to know about AB 723 (effective Jan 1, 2026)
If you've sold a single house in California this year and used virtual staging, retouched a power line, or replaced a brown lawn with a green one in your listing photos โ you've probably already broken a law most agents have never heard of.
It's called AB 723. It took effect on January 1, 2026, and your MLS is already enforcing it.
Here's what it requires, what counts, what doesn't, and how to comply without slowing down a single listing.
The 30-second version
If your marketing photo for a California listing has been digitally altered in any way that changes the property's representation, you must:
- Add a "reasonably conspicuous" disclosure on or near the image โ typically a label that says "Digitally altered" or equivalent
- Provide access to the unaltered original via a link, URL, or QR code
This applies to every party acting on your behalf โ your photographer, your assistant, your marketing manager, your virtual staging tool. The compliance burden ultimately rests on you, the licensed agent.
Source: California legislative information โ Bill text AB 723.
What counts as "digitally altered"
The law distinguishes between routine photo editing and alterations that change the property representation.
- โข Lighting and exposure adjustments
- โข Sharpening
- โข White balance / color correction
- โข Angle, straightening, cropping
- โข Standard enhancements that don't change what the buyer sees
- โข Virtual staging โ adding furniture, decor, plants
- โข Removing furniture digitally ("destaging")
- โข Adding or replacing landscaping
- โข Removing power lines, dumpsters, cars
- โข Sky replacement
- โข Adding pool water of a different color
- โข Removing or adding structural elements
- โข Filling in cracks, hiding damage
The principle: if a buyer would expect to see X when they showed up and X isn't what they'll see, you've crossed the disclosure line.
How to comply โ the workflow
For every altered image you market on MLS, Zillow, Redfin, your own site, or anywhere else:
Step 1 โ Add the disclosure on or near the image
"Reasonably conspicuous" in practice means a label that's actually visible without effort. Some MLSs accept:
- A text caption beneath each photo: "Digitally altered. Original available below."
- A semi-transparent banner overlaid on the image itself
- A separate disclosure card in the listing description
Check your specific MLS's guidance. SDMLS and CRMLS have published implementation guides. Bay East too.
Step 2 โ Provide access to the original
This is where most agents get tripped up. "Access" means the buyer or buyer's agent can actually see the unaltered original without contacting you. Acceptable methods:
- Link or URL placed near the disclosure (e.g., "View original: agentdomain.com/originals/1234.jpg")
- QR code placed on/near the altered image that scans to the original
- Direct posting of the original image in the listing gallery, adjacent to the altered version
The original must be the unmodified file straight from the camera or photographer โ same image, no edits beyond the standard-editing allowances above.
Step 3 โ Make sure your vendors are doing this too
If your virtual staging tool or photographer doesn't return AB-723-ready files, you are still on the hook. Ask every vendor: "Do you ship AB 723 compliance โ disclosure overlay AND access-to-original?" Most don't. Most are letting you do the work.
What happens if you don't comply?
The statute doesn't specify a fine; enforcement happens through:
- MLS rejection or removal of non-compliant listings โ already happening. The major California MLSs are publishing implementation guides because they're rejecting listings that don't meet the standard.
- Department of Real Estate (DRE) complaints from buyers who feel misled โ could escalate to disciplinary action against your license
- Civil liability if a buyer claims they were materially misled by an undisclosed digital alteration
- Brokerage discipline โ many CA brokers are now requiring AB 723 compliance as a condition of MLS submission
You probably won't get fined for one slip-up. You absolutely will get listings rejected, complaints filed, or brokerage compliance officers in your inbox.
The compliance gap nobody's talking about
Here's the thing nobody's mentioning: virtually none of the AI staging tools you might already use ship AB 723 compliance.
We checked the 10 biggest:
- VirtualStaging.app โ doesn't ship disclosure overlay or QR-linked original
- AI Smart Decor โ doesn't ship it
- BrightShot โ doesn't ship it
- BoxBrownie โ doesn't ship it (and it's the premium, human-edited option)
- Collov AI โ doesn't ship it
- Edensign โ doesn't ship it
- Trolto โ doesn't ship it
- Remodel AI โ doesn't ship it
- ReimagineHome โ doesn't ship it
- Padstyler โ doesn't ship it
Every one of them returns a staged image and lets you figure out compliance on your own. Which means you have to:
- Open the staged image in Photoshop or Canva and add a disclosure overlay
- Upload the original somewhere public (Dropbox, your website, Google Drive)
- Generate a QR code linking to the original
- Add the QR code to the staged image OR include both as separate photos in the MLS listing
Per listing. For every photo. Forever.
A better workflow
We built ListingStage to do all four of those steps automatically. Two ways to use it today:
Email us photos, we send back an MLS-ready package within 24 hours. Disclosure overlay, QR-linked original, printable disclosure card included.
Order staging โFounding-member rate locked for life for the first 100 California agents. Upload, pick a style, download MLS-ready package in 30 seconds.
Join waitlist โTL;DR โ your AB 723 compliance checklist
- โ Identify every listing photo that's been digitally altered (not just lighting/exposure)
- โ Add a conspicuous disclosure to each one
- โ Host or link to the unaltered original
- โ Generate a QR code OR link from the altered image
- โ Confirm your MLS-specific format requirements (each MLS has slightly different rules)
- โ Train your team and vendors on the same workflow
- โ Audit your virtual staging tool โ if it doesn't ship compliance, switch or layer a manual workflow on top
- โ Document your compliance process so a complaint never lands you on the wrong side of the DRE
AB 723 isn't going away. The states that watch California โ Washington, New York, Oregon โ typically pass similar consumer-disclosure laws within 2-3 years. The agents who build compliant workflows now will be ready when this becomes national.
Compare the 10 biggest virtual staging tools โ and see which ones actually ship AB 723.
Read the tool comparison โPublished 2026-05-28. We'll update this post if MLS guidance changes or AB 723 is amended. Want to compare your current AI staging tool's compliance? Send us your tool name.