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California's AB 723: What Real Estate Agents Must Disclose About Digitally Altered Photos

Update California's New Photo Disclosure Law: A New Era for Real Estate Transparency As the sun rises on a new year, a crucial transformation in real estate marketing practices is set to take effect in California. With the introduction of Assembly Bill 723 (AB 723) on January 1, 2026, real estate professionals are now legally bound to disclose when images used in property listings have been digitally altered. The goal? To enhance transparency in an industry where image manipulation has been the norm, often leaving potential buyers feeling deceived. Understanding the Impact of AB 723 For years, agents and photographers have enhanced listing photos to make properties more appealing, sometimes straying into ambiguous territory. Common practices included brightening images, digitally enhancing views, or even entirely staging homes through AI, blurring the lines between enhancement and deception. Under AB 723, however, the rules are clear: any alteration that changes a property’s representation must be disclosed, accompanied by a link or QR code providing access to the original photo. Emily Brooks, a passionate advocate for transparency in real estate, notes that the law protects consumers from experiencing what she terms the “catfish effect” when encountering inflated representations of properties that don’t match reality. This new requirement aims to ensure that potential buyers can make informed decisions based on accurate representations of homes. The Nuances of Digital Alterations While AB 723 mandates disclosure for significant changes—such as adding or removing elements like furniture, landscaping, or fixtures—certain routine edits associated with clarifying the image's quality, like color correction or exposure adjustments, do not require such transparency. The legislation seeks to strike a balance between aesthetic appeal and the integrity of the representation, allowing agents to still enhance properties while maintaining honesty. Consequences for Non-Compliance The stakes are high for non-compliance, with the California Department of Real Estate implementing strict enforcement mechanisms. Violating these new regulations can lead to disciplinary action against brokers and salespersons, and potentially serious legal repercussions, including civil liability and even criminal charges for willful breaches. Brokers are thus urged to update their policies, ensuring that all marketing complies with this pivotal change. How Agents and Buyers Can Prepare The introduction of AB 723 presents several actionable steps for agents to ensure compliance, such as labeling images clearly in marketing materials and adapting their practices in accordance with the law. For buyers, understanding the implications of this law grants them a new level of security when browsing listings, ensuring they know exactly what they are viewing before making an offer. This pivotal law not only influences how properties are marketed but also strengthens trust between real estate professionals and their clients. Emphasizing honesty and transparency is crucial in an industry significantly impacted by visual presentation. Next Steps for Real Estate Professionals As we gear up for the implementation of AB 723, marketplace players need to consider how this legislation could shape the future of real estate marketing. Ensuring compliance begins now—agents and their firms should proactively update their marketing strategies and prepare for a more transparent real estate landscape. With change comes opportunity. Embracing these new guidelines can foster a culture of trust and authenticity within the real estate market, benefiting both agents and buyers alike. As we move forward, staying informed and adaptable will be key in leveraging these changes to enhance the buyer experience.