California AB 723: The Digitally Altered Listing Photo Law

What § 10140.8 requires, which edits it covers and excludes, how CRMLS and SDMLS enforce it inside the MLS, and the questions the statute leaves open

Cal. Bus. & Prof. Code § 10140.8
In effect since January 1, 2026
CRMLS Rule 11.5.2 and SDMLS guidance compared
Sources checked October 10, 2026

Last reviewed against the published sources listed below.

Key Information

California AB 723 added Business and Professions Code § 10140.8, effective January 1, 2026. A real estate licensee, or someone acting for them, who uses a digitally altered image in advertising or promotional material for the sale of real property must put a reasonably conspicuous statement on or adjacent to the image saying it was altered, plus a link, URL, or QR code to the original, unaltered image. Lighting, exposure, white balance, color correction, sharpening, angle, straightening, and cropping are excluded if they do not change how the property is represented.

Pricing: $33 per listing — staged and enhanced photos, every altered image labelled and paired with its original, disclosure page + QR, one ZIP in MLS order. No subscription.

Time Required: 8-minute read

The Problem

AB 723 is short, but it reaches every California sale advertisement that uses a virtually staged, decluttered, or otherwise edited photo. The statute, the MLS rules, and vendor blogs do not use the same lists of covered edits, and CRMLS bans some edits outright that the statute merely requires you to disclose.

The Solution

This guide sets the statute's text, CRMLS Rule 11.5.2, and SDMLS's published guidance side by side, with a dated source for each point, so you can see what the law requires, what your MLS adds, and where the gray areas are.

Key Features

Two-part disclosure

Section 10140.8(a)(1) requires (1) a statement that the image has been altered, reasonably conspicuous and located on or adjacent to the image, and (2) a link to a publicly accessible website, URL, or QR code that includes and clearly identifies the original, unaltered image.

Benefit: A label alone is not enough; the original must be reachable

Websites you control

Under § 10140.8(a)(2), when the ad is posted on a website the licensee (or someone acting for them) controls, the unaltered versions must be included in the posting, or the posting may instead link to a publicly accessible site that includes and clearly identifies the originals.

Benefit: Brokerage and agent sites need the originals or a link to them

A broad definition

A 'digitally altered image' is one created by or at the direction of the licensee and altered with photo editing software or artificial intelligence to add, remove, or change elements, 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 such as streetlights, utility poles, views through windows, and neighboring properties.

Benefit: Virtual staging and decluttering are squarely covered

Labeled pairs and a hosted originals page

BuildMyListing ($33 per listing) returns staged and enhanced photos with every altered image labeled and paired with its original, a hosted public disclosure page with a QR code, and one ZIP in MLS order. BuildMyListing also offers a free AB 723 disclosure tool at /tools/ab723-disclosure/.

Benefit: The originals link and the photo pairs are ready before upload

How It Works

1

Sort every edited photo

For each photo, ask whether anything was added, removed, or changed (furniture, decor, fixtures, finishes, landscaping, views, poles or wires) or whether only lighting, exposure, white balance, color, sharpness, angle, straightening, or cropping was adjusted. Anything in the first group is a digitally altered image. If you cannot tell, treat it as altered; CRMLS and SDMLS both advise disclosing when in doubt.

2

Check your MLS before you edit

CRMLS Rule 11.5.2 prohibits images altered to change real property elements (flooring, walls, paint color, cabinetry, landscape, facade and similar) unless the property will be improved to match by close as part of the listed price, and prohibits altering elements outside or visible from the property. Disclosure does not cure a prohibited edit inside CRMLS.

3

Label and pair in the MLS

Upload the original, place it immediately before or after the altered image, and label the altered photo in its description field ('Digitally Altered', 'Virtually Staged', 'AI Altered', or 'Photo Modified' under CRMLS Rule 11.5.2). SDMLS also asks you to label the altered image with the original image URL.

4

Carry the disclosure into every other ad

On flyers, postcards, social posts, and portal or brokerage-site listings, place an 'image digitally altered' statement on or next to each altered image and give a link, URL, or QR code that leads to a public page showing and identifying the originals.

5

Keep the originals available

Recommendation: keep the original files and the public originals page live for as long as any ad using the altered image is in circulation, and keep a copy in the transaction file.

Compliance Reference

EditCal. Bus. & Prof. Code § 10140.8 (state law)CRMLS Rule 11.5.2 (MLS rule)SDMLS guidance (MLS)
Virtual staging (adding furniture or decor)Digitally altered: disclose on or adjacent to the image and link to the originalAllowed: label the photo and display the original immediately before or after itAllowed: label 'Digitally Altered' and place the original adjacent
Removing furniture or personal items (virtual decluttering)Digitally altered (furniture is a listed example): disclose and linkAllowed with label and adjacent originalAllowed with label and adjacent original
Changing paint color, flooring, cabinetry, walls, or floor planDigitally altered: disclose and linkProhibited unless the property will be improved to match by close as part of the listed priceListed as an example of a digitally altered image: label and pair
Adding or changing landscaping, lawn, or hardscapeDigitally altered: disclose and linkProhibited (landscape and hardscape are listed); CRMLS's FAQ says AI-generated landscaping images are not permitted in the MLSListed as an example ('altering landscaping'): label and pair
Removing utility poles, wires, or streetlights; changing window views or neighboring propertiesDigitally altered (listed examples): disclose and linkProhibited'Modifying views or backgrounds' listed as an example: label and pair
Sky replacement or twilight conversionNot named in the statute; whether it 'changes the representation of the real property' is unsettledNot named in Rule 11.5.2; CRMLS advises disclosing when in doubtNot named; 'modifying views or backgrounds' is listed
Lighting, exposure, white balance, color correction, sharpeningExcluded if they do not change the representation of the propertyExcludedExcluded
Angle, straightening, croppingExcluded if they do not change the representation of the propertyExcludedExcluded (cropping, resizing, straightening listed)

Common Use Cases

Virtually staged vacant condo in CRMLS

Scenario: A listing agent virtually stages six empty rooms and plans to use them in the MLS, on Zillow syndication, and on a printed open-house flyer.

Process: Upload all six originals to the MLS, each immediately before or after its staged version, with 'Virtually Staged' in the photo description → on the flyer, print 'Virtually staged image' next to each staged photo and a QR code to a public page showing the six originals → on the agent's own website, include the originals in the listing or link to that page.

Compliance: Meets the statement-plus-original structure of § 10140.8(a) and the pairing and labeling terms of CRMLS Rule 11.5.2.

Renovation preview with new floors and paint

Scenario: A seller wants buyers to 'see the potential' with AI-rendered hardwood floors and new paint, but no work is planned before close.

Process: Under the statute, the images could be used with disclosure. Under CRMLS Rule 11.5.2, they cannot go into a CRMLS listing at all, because the property will not be improved to match by close as part of the listed price. Keep such renderings out of the MLS; if used in other marketing, label them and link to the originals.

Compliance: MLS rules can be stricter than the statute. BuildMyListing provides compliance documentation tools, not legal advice; consult a licensed California real estate attorney or your broker before using renovation renderings.

Enhanced-only photo set

Scenario: A photographer delivers 25 photos with exposure blending, white balance, color correction, straightening, and cropping, with nothing added or removed.

Process: Confirm with the photographer in writing that no elements were added, removed, or changed → no AB 723 statement or originals link is needed for those images → if any frame had a sky swap or object removal, treat that frame as altered.

Compliance: § 10140.8(b)(2) excludes common adjustments that do not change the representation of the property.

Published Sources

Primary sources checked on the dates shown below. Rules and statutes can change; confirm the current text before publishing.

Frequently Asked Questions

What is California AB 723?
AB 723 (2025–26 Regular Session) is a California law that added Section 10140.8 to the Business and Professions Code. It was chaptered by the Secretary of State on October 10, 2025 as Chapter 497, Statutes of 2025, and took effect January 1, 2026. It requires real estate brokers and salespersons, and people acting on their behalf, to disclose digitally altered images used in advertising or promotional material for the sale of real property and to give consumers access to the original, unaltered image.
When did AB 723 take effect?
January 1, 2026 (not 2024, as some older summaries state). SDMLS's FAQ says listings that contain digitally altered images must comply once the law is in effect, including labeling and including originals, so listings that went live before January 1, 2026 were not grandfathered under its rules.
What exactly does AB 723 require?
Two things for each digitally altered image in a sale advertisement: (1) a statement that the image has been altered, which must be reasonably conspicuous and located on or adjacent to the image, and (2) a link to a publicly accessible website, URL, or QR code that includes and clearly identifies the original, unaltered image. If the ad is on a website the licensee controls, the unaltered images must be included in the posting, or the posting can link to a public site that includes and clearly identifies them. The statute does not prescribe exact label wording.
What counts as a 'digitally altered image'?
An image created by or at the direction of the licensee that has been altered with photo editing software or artificial intelligence to add, remove, or change elements, 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, such as streetlights, utility poles, views through windows, and neighboring properties. Virtual staging, virtual decluttering, and object removal fall within it.
Which photo edits are excluded from AB 723?
Under § 10140.8(b)(2), an image is not 'digitally altered' if only lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure, or other common photo editing adjustments were made that do not change the representation of the real property. The qualifier matters: an adjustment that changes how the property is represented is not protected by the exclusion.
Does sky replacement or a twilight conversion need an AB 723 disclosure?
The statute does not name sky replacement, twilight conversion, or lawn greening, and commentators disagree. Open Homes Photography's explainer notes sky replacement is not addressed in the bill. SDMLS lists 'modifying views or backgrounds' as an example of alteration, and CRMLS says to disclose when in doubt. Recommendation: label and pair these images; a disclosure costs little and an undisclosed alteration is the larger risk.
Does AB 723 apply to rental listings?
The statute's text covers advertisements and promotional material 'for the sale of real property'; it does not mention leases. Rental marketing is therefore outside its literal wording, though existing rules against misleading advertising and your MLS's photo rules can still apply. Recommendation: apply the same label-and-original practice to lease listings that use altered images.
How does CRMLS implement AB 723?
CRMLS adopted a new Rule 11.5.2 (the former 11.5.2 became 11.5.3). A subscriber who submits a digitally altered image must also submit the original, display it immediately before or after the altered image, and label the altered image 'Photo Modified', 'Virtually Staged', 'Digitally Altered', 'AI Altered', or a substantially similar term in the photo's text field. The rule also prohibits images altered to change real property elements unless the property will be improved to match by close, and prohibits altering elements outside or visible from the property.
How does SDMLS implement AB 723?
SDMLS's FAQ asks agents to label the altered image in photo remarks (for example 'Digitally Altered'), upload the original and place it adjacent in the photo sequence, and label the altered image with the original image URL. SDMLS applies its altered-image standards to downstream IDX, VOW, API, and syndication displays and says vendors may not remove or obscure altered-image indicators or pairings. Non-compliance can lead to MLS compliance action or suspension of data access.
What is the penalty for violating AB 723?
The Legislative Counsel's Digest states that a violation of the new section would be a crime under the existing Real Estate Law, and a licensee's conduct can also be reviewed by the California Department of Real Estate. MLS enforcement is separate: CRMLS's February 2026 FAQ said there was no specific fine yet and that its Rules Committee would revisit fines in 2026, so check CRMLS's current citation policy. The statute itself sets no dollar figure.
Who is responsible: the agent, the photographer, or the MLS?
The statute applies to the real estate broker or salesperson 'or person acting on their behalf' who includes the altered image in an ad, and the definition covers images created 'by or at the direction of' the licensee, so an agent cannot shift the duty to a photographer or staging vendor. WAV Group's analysis reads the law as placing no direct obligation on MLSs or IDX sites, but MLSs such as CRMLS and SDMLS have adopted their own rules that bind their subscribers.
Do other states have a law like AB 723?
As of October 10, 2026, we have not verified an equivalent statute in any other state. Other states' general prohibitions on misleading advertising and individual MLS photo rules may still restrict altered images, so check your state licensing law and MLS rules.
How does BuildMyListing help with AB 723?
For $33 per listing (one-time, no subscription), BuildMyListing returns staged and enhanced photos with every altered image labeled and paired with its original, a hosted public disclosure page with a QR code you can use in print, and one ZIP in MLS order. There is also a free AB 723 disclosure tool at /tools/ab723-disclosure/. BuildMyListing provides compliance documentation tools, not legal advice. Consult a licensed real estate attorney or your broker about your specific marketing.

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