CA Seller Disclosure | § 1102 + AB 723

Key Information

California Civil Code § 1102 requires the Transfer Disclosure Statement for residential sales. California Business and Professions Code § 10140.8 (AB 723, signed October 10, 2025; effective January 1, 2026) requires public disclosure of AI-altered photos. Federal Lead-Based Paint Disclosure (42 U.S.C. § 4852d) also applies.

Pricing: Starting $99/month

Time Required: Listing documentation package in one workflow

The Problem

California has more required disclosures than any other state: the TDS, NHD, Megan's Law, Mello-Roos, water-conserving fixtures, methamphetamine contamination, and now AB 723 for AI-altered photos. Missing any layer creates rescission risk and DRE discipline exposure.

The Solution

BuildMyListing prepares the documentation layer for California listings — AB 723 photo-pair tracking with QR codes, enhanced photos that stay within the AB 723 exempt list, and listing copy that passes Fair Housing scans. Use alongside CAR forms for TDS, NHD, and federal disclosures.

Key Features

AB 723 Photo Alteration Tracking

Every photo alteration is logged automatically. Exempt edits (brightness, contrast, white balance, lens correction, cropping, sharpening, noise reduction) require no disclosure. Disclosure-required edits (virtual staging, object removal, sky replacement, renovation previews) generate public disclosure pages and QR codes per California Business and Professions Code § 10140.8.

Benefit: Automatic AB 723 compliance for every listing photo

Public Disclosure Page + QR Code

BuildMyListing generates a public, unauthenticated /originals/{listing} page showing altered-vs-original photo pairs, plus an SVG QR code for print materials. This satisfies the AB 723 requirement that the public disclosure remain accessible.

Benefit: Print-ready QR codes for flyers and open houses

Fair Housing Description Scan

Generated listing descriptions are scanned against 200+ Fair Housing Act-prohibited patterns (federal seven classes plus California Fair Employment and Housing Act additions including source of income, ancestry, genetic information, and immigration status).

Benefit: Reduce DRE complaint exposure on listing copy

CRMLS Rule 11.5.2 Photo Pairs

For listings syndicated to CRMLS, BuildMyListing produces altered and original photo pairs in the format that CRMLS Rule 11.5.2 requires when AI alterations are present.

Benefit: CRMLS-ready photo packages without manual pairing

How It Works

Upload Listing Photos

Upload originals to BuildMyListing. Originals are stored immutably in R2 so the AB 723 audit trail begins before any enhancement.

Enhance and Stage

Apply enhancements and virtual staging. BuildMyListing classifies each edit as exempt or disclosure-required per § 10140.8 and tags the alteration log.

Download Listing Package with Compliance Record

Download enhanced photos, MLS copy, social captions, and the AB 723 disclosure page URL plus QR code. Pair with CAR-published TDS, NHD, and lead paint forms for the full California disclosure stack.

Compliance Reference

California Disclosure Layer	Authority	Form / Mechanism	What It Covers
Transfer Disclosure Statement (TDS)	California Civil Code § 1102	C.A.R. Form TDS	Material defects, systems condition, environmental hazards, neighborhood nuisances
Natural Hazard Disclosure (NHD)	California Civil Code § 1103	C.A.R. Form NHD or third-party NHD report	Flood zones, fire severity zones, earthquake fault zones, seismic hazard zones
AB 723 Photo Alteration Disclosure	California Business and Professions Code § 10140.8 (AB 723, effective January 1, 2026)	Public disclosure page + QR code + photo pairs	AI-altered listing photos: staging, object removal, sky replacement, renovation previews
Lead-Based Paint	42 U.S.C. § 4852d (federal)	EPA disclosure form + pamphlet	All pre-1978 residential housing
Megan's Law Database	California Civil Code § 2079.10a	Statutory notice in purchase agreement	Notice that buyers can check meganslaw.ca.gov for registered offenders
Mello-Roos / Special Tax Districts	California Civil Code § 1102.6b	Notice of Special Tax	Properties subject to Mello-Roos Community Facilities District assessments
Water-Conserving Plumbing Fixtures	California Civil Code § 1101.4	Statutory disclosure in TDS	Compliance with non-compliant plumbing fixture replacement requirements

Common Use Cases

Los Angeles Listing with Virtual Staging

Scenario: Agent listing a vacant Mid-Wilshire condo. Virtually staged 4 rooms with AI-generated furniture. AB 723 applies because staging is not on the exempt list.

Process: Upload originals → BuildMyListing tags staging as disclosure-required → Generate public /originals page → Download QR code for flyer → Pair with C.A.R. TDS / NHD prepared separately

Compliance: Full AB 723 photo-pair documentation plus the standard § 1102 disclosure stack

Pre-1978 Bay Area Resale

Scenario: Berkeley craftsman built in 1925. Agent must layer federal lead paint disclosure on top of § 1102 TDS and any AB 723 photo edits.

Process: BuildMyListing flags pre-1978 construction → Includes lead paint addendum reminder in package → Tracks photo alterations under AB 723 → Agent attaches C.A.R. Form FLD / LPD

Compliance: Federal 42 U.S.C. § 4852d satisfied alongside state § 1102 and § 10140.8

Frequently Asked Questions

What is California Civil Code § 1102 and who must comply?

California Civil Code § 1102 requires sellers of residential real property of one to four dwelling units to deliver a written Transfer Disclosure Statement (TDS) to buyers before transfer of title. The TDS covers the condition of structural and mechanical systems, environmental hazards, neighborhood nuisances, and known defects. The California Association of Realtors publishes the standard C.A.R. Form TDS that satisfies the statute. The seller and seller's agent both sign the form.

What is AB 723 and how does it relate to the TDS?

AB 723 is a separate California law codified at California Business and Professions Code § 10140.8, taking effect January 1, 2026 (signed October 10, 2025). It addresses AI-altered listing photos — a topic the TDS does not cover. AB 723 requires a public disclosure page (with photo pairs) and a QR code on print materials whenever listing photos have been altered in a way that goes beyond the statutory exempt list (brightness, contrast, white balance, lens correction, cropping, sharpening, noise reduction). AB 723 is in addition to, not a replacement for, § 1102 TDS obligations.

What alterations are exempt under AB 723?

California Business and Professions Code § 10140.8 exempts: brightness adjustment, contrast adjustment, white balance / color correction, lens correction, cropping, sharpening, and noise reduction. Any alteration beyond this list requires public disclosure. Common disclosure-required edits include virtual staging, object removal, sky replacement, renovation previews, and adding or removing landscaping features. If you are uncertain whether an edit is exempt, treat it as disclosure-required and consult a licensed real estate attorney.

What happens if a California seller fails to deliver the TDS?

If the TDS is not delivered before the transfer of title, California Civil Code § 1102.13 gives the buyer a right of rescission. If the TDS is delivered after the contract is signed, the buyer has 3 days to terminate the contract (5 days if delivered by mail). Separately, if a known material defect was withheld, the seller and listing agent may face civil liability for fraudulent non-disclosure plus California Department of Real Estate (DRE) license discipline.

Does the federal lead-based paint requirement apply to California homes?

Yes. The federal EPA/HUD Lead-Based Paint Disclosure Rule (42 U.S.C. § 4852d) applies to any sale of residential housing built before 1978 in all 50 states. California has a large pre-1978 housing stock, particularly in San Francisco, Oakland, Sacramento, and older Los Angeles neighborhoods. Sellers must provide the EPA pamphlet, complete the disclosure form (typically C.A.R. Form FLD), and give buyers a 10-day inspection opportunity. This applies in addition to § 1102 and AB 723.

Does the Natural Hazard Disclosure apply to every California listing?

California Civil Code § 1103 requires the Natural Hazard Disclosure (NHD) for residential properties of one to four units in designated hazard zones — which, in practice, covers most California properties. Hazards disclosed include FEMA flood zones, state flood hazard zones, very high fire hazard severity zones, wildland fire areas, earthquake fault zones, and seismic hazard zones. Many agents order a third-party NHD report from a qualified vendor; the cost is typically paid by the seller and the vendor's report can be relied on by the seller and agent.

What protected classes apply to Fair Housing in California listing descriptions?

The federal Fair Housing Act (42 U.S.C. § 3604) protects seven classes: race, color, national origin, religion, sex, familial status, and disability. California adds protected classes under the Fair Employment and Housing Act (FEHA) including marital status, ancestry, source of income, sexual orientation, gender identity, gender expression, age, genetic information, military or veteran status, and immigration status. Listing descriptions must avoid language that expresses a preference, limitation, or discrimination based on any of these characteristics.

Does AB 723 require disclosure of every digital edit — like removing a power line?

Object removal is not on the exempt list in California Business and Professions Code § 10140.8, so removing a power line, a parked car, or any other object visible in the original photo is generally considered disclosure-required under AB 723. The disclosure mechanism is the public /originals page and the QR code on print materials. BuildMyListing tags object removal as disclosure-required by default.

How does California disclosure compare to other major real estate markets?

California has the most layered residential disclosure framework in the United States. Texas (§ 5.008) mandates a form but does not have an AB 723 equivalent. Florida (§ 689.261) requires only the limited statutory radon notice and otherwise relies on common-law disclosure of material facts. Washington (RCW 64.06) mandates Form 17 but has no photo alteration statute. New York's PCDA technically requires a form but allows sellers to waive it with a $500 credit. As of early 2026, California is the only state with a statutory AI photo disclosure regime; agents listing California properties should not assume their out-of-state disclosure habits transfer.

Does BuildMyListing provide legal advice on California disclosures?

No. BuildMyListing is a compliance documentation tool that creates an audit trail of photo alterations under AB 723 and generates Fair Housing-scanned listing copy. It does not replace the C.A.R. Transfer Disclosure Statement, Natural Hazard Disclosure, or any other statutory form, and it does not provide legal advice. Consult a licensed California real estate attorney for questions about your specific disclosure obligations.

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California Seller Disclosure Requirements — § 1102 + AB 723 for Listing Agents