The short version
As of January 1, 2026, California requires real estate licensees to disclose when listing photos have been digitally altered — including AI virtual staging — and to make the original, unaltered photos reasonably available to consumers. That's Assembly Bill 723 (AB 723), the first state law in the country specifically regulating digitally altered real estate imagery.
Virtual staging is still completely legal in California. AB 723 doesn't ban anything — it standardizes the disclosure practices that good agents were already following. But "I disclosed it in the remarks" is no longer the whole job. You now need a workflow.
What AB 723 actually requires
- Clear and conspicuous disclosure that an image has been digitally altered. A buried line in the listing remarks is risky; a visible "Virtually Staged" label on the image itself is the defensible standard.
- Access to the originals. Buyers must be able to see the unaltered photos — a public link or QR code in the listing satisfies this.
- Every altered image counts. Disclosure applies per image, not per listing.
What hasn't changed: you still can't digitally alter the condition of the property. Removing water stains, cracks, power lines, or damage is misrepresentation regardless of what you disclose. Stick to adding and removing furniture and décor.
The 3-step compliance workflow
1. Label every staged image
Add a visible "Virtually Staged" mark to the photo itself, then repeat the disclosure in the caption and listing remarks. StagePro applies the on-image label automatically when you generate a staged photo — it's on by default for virtual staging.
2. Publish your originals
Create a public page showing the unaltered photos and link it from your listing. In StagePro, every project gets a one-click compliance page: a public URL with originals and staged versions side by side, plus a downloadable QR code for flyers and open-house sheets.
3. Upload pairs to the MLS
Best practice (and some MLS rules) is uploading the original photo immediately before its staged version. StagePro's paired MLS export zips your originals and staged photos named in exactly that order.
What happens if you don't comply?
AB 723 violations are enforceable by the California Department of Real Estate like other advertising violations — citations, fines, and license discipline in serious cases — on top of MLS sanctions and potential civil liability if a buyer relies on a deceptive image.
Outside California?
AB 723 only applies to California listings, but it's widely expected to become the national template. MLS rules and the NAR Code of Ethics already require honest advertising everywhere. See our state-by-state guides in the virtual staging compliance hub, or jump straight to the full AB 723 compliance checklist.
Bottom line
AB 723 rewards agents who systematize disclosure. With automatic labels, a one-click originals page, and paired MLS exports, compliance takes minutes — and a clearly disclosed listing builds more buyer trust, not less. Try AB 723-ready virtual staging with StagePro.
