ENACTED
Effective January 1, 2026
California
California AB-723
The first state law requiring real estate professionals to disclose digitally altered listing photos. Non-compliance can result in criminal penalties (fines up to $1,000 and/or up to 1 year in jail), DRE administrative fines up to $2,500 per citation, and license discipline including suspension or revocation.
Overview
Assembly Bill 723 (AB-723) requires real estate licensees in California to disclose when listing photographs have been digitally altered in ways that materially affect the appearance of the property.
The law applies to all residential real estate listings where photographs are used for marketing purposes, including MLS listings, website listings, and printed materials.
The bill specifically targets virtual staging, sky replacement, and other alterations that could mislead consumers about the actual condition or appearance of a property.
Quick Facts
Applies to
CA Real Estate Licensees
Property Type
Residential
Effective
January 1, 2026
Max Fine
Up to $2,500 (citation); up to $1,000 (criminal)
Enforcement
CA DRE
What Requires Disclosure
The following alterations must be disclosed under AB-723:
Virtual staging (adding furniture, décor, or other items)
Sky replacement or enhancement
Removal of permanent structures or features
Addition of features not present in the property
Landscape alterations (greening, adding plants)
View alterations
What's Exempt
Standard photo processing that doesn't materially alter the property:
Color correction and white balance
Exposure and brightness adjustments
Cropping and straightening
Lens distortion correction
Sharpening and clarity
Removal of temporary items (trash cans, vehicles)
HDR processing for accurate representation
How to Comply
Follow these steps to ensure your listings meet AB-723 requirements.
1
Identify Altered Images
Review all marketing photos and identify which have been digitally altered beyond standard processing.
2
Document Unaltered Versions
Keep unaltered versions of all photos used in listings.
3
Add Disclosure Labels
Apply clear disclosure to each altered image indicating the type of alteration.
4
Make Unaltered Photos Available
Provide a way for consumers to view the unaltered photos.
PropMedia Makes It Easy
Our disclosure tool handles all four steps automatically. Upload your photos, select the edit types, and download a compliant image with a badge that links to the unaltered photo.
Create Compliant Disclosure
Compliance Risks & Penalties
AB-723 is part of California's Real Estate Law (Bus & Prof Code § 10140.8). Violating the disclosure requirement can lead to the following consequences.
Criminal penalties (willful violations)
Under Real Estate Law (e.g. Bus & Prof Code § 10140), willful violation of disclosure obligations is a misdemeanor: fines up to $1,000, up to 1 year in county jail, or both. Licensed professionals may also face DRE disciplinary action.
DRE administrative & licensing actions
The Department of Real Estate and Real Estate Commissioner may take action under provisions such as § 10177: license suspension, license revocation, or denial of renewal or issuance. These are separate from criminal prosecution.
Citations & administrative fines
The DRE can issue citations with administrative fines—separate from criminal penalties. Fines up to $2,500 per citation for licensees (and similar for unlicensed individuals), depending on severity and history under DRE rules.
Criminal convictions & license impact
A criminal conviction (misdemeanor or felony) related to real estate duties can be treated as substantially related to licensure. The DRE may take disciplinary action, including revocation, even when the criminal case is separate from DRE enforcement.
Summary
• Criminal misdemeanor: up to ~$1,000 fine and/or up to 1 year county jail (under general Real Estate Law offense provisions).
• DRE disciplinary actions: license suspension or revocation.
• Administrative fines/citations: up to $2,500 per violation.
Official Source
Read the full text of AB-723 on the California Legislature website.
View Full Legal Text
Last updated: January 2026
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