California AB723: What Real Estate Agents Must Know About AI-Edited Photos in 2026
California agents face a new law that could make common AI edits illegal. Here’s how to protect your listings—and your business.
Starting January 1st, 2026, California real estate agents must properly disclose AI-edited property photos or face penalties, including potential criminal charges for wilful violations. While this legislation currently applies only to California, similar laws are being considered across North America. As your trusted real estate media partner, we're sharing what you need to know to stay ahead and protect your business.
What Is California's AB723?
California's new AB723 law establishes strict requirements for any digitally altered real estate images. A "digitally altered image" includes modifications made through photo editing software or AI that add, remove, or change:
Fixtures, furniture, and appliances
Flooring, walls, and paint colors
Hardscape, landscape, and facades
External elements like street lights, utility poles, and window views
Neighboring properties
Penalties for non-compliance aren’t limited to MLS fines—wilful violations could result in criminal charges under California’s Real Estate Law.
Standard Photography Enhancements Are Still Allowed
Professional photography adjustments that enhance image quality without misrepresenting the property remain completely acceptable:
Lighting and exposure corrections
Color balance and correction
Sharpening and clarity
Straightening and cropping
White balance adjustments
At Vardy Media, all our standard real estate photography and video packages include these compliant enhancements at no extra charge, keeping your listings visually compelling and fully compliant.
Where the Law Applies
AB723 applies anywhere a property is marketed:
MLS listings and property websites
Social media posts (Instagram, Facebook, LinkedIn)
Print flyers and brochures
Magazine advertisements
Email marketing campaigns
How Disclosure Works
The law requires a "reasonably conspicuous notice" when images are digitally altered. Agents can comply in two ways:
1. Display Original and Edited Versions Together
On platforms you control (MLS, your website), show both the edited image labelled as "digitally altered" and the original unedited version. Viewers should be able to access both easily, such as swiping in a gallery.
2. Use QR Codes or Links
For social media posts, flyers, or print materials where showing both versions isn’t practical, add a QR code or URL on the edited image linking to the originals. The link must clearly indicate its purpose.
Note for Vardy Media Clients: For clients ordering online from regions with disclosure requirements (like California), we offer a checkbox to request original images, including unedited skies or other elements. This ensures compliance while keeping marketing effective. In jurisdictions like Ontario, this is not yet required, but we are monitoring developments and prepared to adapt our processes when necessary.
Compliant Editing and Virtual Staging
Virtual Staging
Virtual staging remains allowed, but programs that regenerate entire images and alter structural elements are prohibited. AI tools like ChatGPT and Nano Banana often change walls, windows, and architectural details, which is now illegal under AB723.
At Vardy Media, our skilled human editors use professional 3D rendering software for virtual staging. Furniture and décor are added without altering structural elements, ensuring compliance while showcasing the property’s potential. Learn more about our compliant virtual staging.
Twilight Photography
Dramatic twilight edits are allowed but must be disclosed as digitally altered, with the daytime original available for comparison.
Item Removal
Even minor edits, like removing a moving pod or a parked car, require disclosure and access to the original image.
Sky Replacements
Changing an overcast sky to blue counts as a digital alteration, as AB723 includes “elements outside of or visible from the property.”
Marketing Impact: Challenges and Benefits
Challenges
“Digitally Altered” labels may reduce immediate wow factor
Some buyers may be wary of disclosure notices
Additional steps in marketing workflow
More complex social media posting requirements
Benefits
Buyers arrive with accurate expectations
Reduces disappointment at in-person viewings
Builds trust and credibility
Protects against legal issues
Demonstrates professionalism and transparency
Critical Exception: Private Presentations
AB723 does not apply to images used in private presentations with potential buyers. You can still show enhanced renderings, virtual staging, or mockups during one-on-one consultations.
Protecting Your Business
Even if your state or province hasn’t enacted similar legislation, smart realtors are preparing. Here’s how to stay ahead:
Work With Compliant Media Providers
Partner with photographers and media companies who understand emerging standards. At Vardy Media, our virtual staging and editing processes already align with AB723 for clients in applicable regions, maintaining structural integrity while producing stunning visuals. For clients outside those regions, our standard processes continue as usual.
Discuss Options With Clients
Have early conversations about which enhancements make sense for each listing. Sometimes an empty space photographed beautifully tells the story better than virtual staging with disclosure labels.
Keep Your Originals When Needed
For clients in jurisdictions with disclosure requirements, you can request original versions of significantly edited images via our online ordering system. This ensures full compliance where required while keeping your marketing workflow efficient elsewhere. (In Ontario and other regions where disclosure is not yet mandated, this step is optional. We continue to monitor legislation and will update our processes as needed to keep our clients compliant.)
Why This Matters Beyond California
California often sets the precedent for consumer protection legislation that spreads across North America. Multiple states are reviewing similar measures, and Canadian provinces follow real estate advertising standards closely.
The principle of truth in advertising exists in most jurisdictions. AB723 simply makes it explicit in the age of AI. For clients in Ontario and across Canada, Vardy Media monitors developments and ensures our services remain compliant.
Vardy Media Services
Whether in California, Ontario, or anywhere worldwide, our online ordering services make accessing professional, compliant media easy.
Services Include:
Professional Real Estate Photography and Video editing with compliant standard enhancements
Compliant Virtual Staging & 3D Rendering created by human editors without AI generation tools
Floor Plans (note: on-site service limited to Ontario)
Drone Photography & Video - to shoot your next property with us, please fill out this form
Special Note: Online clients in regions with disclosure laws can select a checkbox to receive original versions of any edited elements. In areas where disclosure isn’t yet required, like Ontario, this step is optional.
Contact Vardy Media today to discuss your upcoming listings and ensure your marketing stays effective and ready for evolving regulations.
Disclaimer: The information provided in this post is for general informational purposes only and does not constitute legal advice. Vardy Media Inc. makes no representations or warranties regarding the accuracy, completeness, or suitability of the information for your specific circumstances. Always consult a qualified legal professional or regulatory authority regarding compliance with any real estate, advertising, or AI-related laws. Vardy Media Inc. is not responsible for any decisions, actions, or consequences that may arise from reliance on this content.
