TL;DR

Beginning January 1, 2026, California’s new AB 723 will require real estate brokers, agents, or anyone acting on their behalf to clearly disclose when marketing images have been digitally altered—and to provide buyers access to the original, unaltered versions.

The law distinguishes between acceptable standard photo edits (like white balance and exposure) and alterations that change the representation of real property (like adding grass, removing wires, or virtual staging).

Open Homes is preparing now so you’ll be ready: we’ll clearly label altered vs. unaltered images in your Media Manager, provide both versions in our delivery system, and develop property website tools to simplify disclosure requirements.

Key takeaways:

• Effective Date: January 1, 2026
• Applies to: real estate agents, brokers, developers, and marketing staff involved in property advertising
• The bottom line:  Any “digitally altered” ( AI-generated or typical software edited)  photo must include a clear disclosure and access to the original version
• The goal: Promote accurate, transparent real estate marketing and reduce consumer deception claims related to images (expanding NAR art 2, 12)
• Why compliance matters: violations fall under Real Estate Law; willful violations are crimes.

 

AB 723 Digitally Altered Photo Disclosure: What California Agents Need to Know for 2026

Real estate professionals have always balanced the need to market properties beautifully while ensuring that representations remain truthful (NAR Article 2 & Article 13). Historically, misrepresentation concerns centered on property lines, access, easements, fixtures, or building features. But the last decade—and especially the recent explosion of AI photo tools—has introduced a new challenge: images can now be altered faster, easier, and more convincingly than ever.

At Open Homes, we’ve always supported Agents in proper representation of listings, and frankly, we’re not new to the many legal and ethical challenges regarding digitally altering images for marketing purposes, but this new law will codify parts of the disclosure process that we have always provided. For example, we’ve offered “digital fire” in fireplaces at no charge for many years, but have always supplied both non-fire and fire-added images with a clear “_fire” in the file name and as a label and filter in your Atrium™ Media Manager.   

To address this, the California Legislature passed AB 723, a new law taking effect January 1, 2026, requiring disclosure whenever real estate marketing images are digitally altered in ways that could affect a buyer’s understanding of the property.

In this post, we break down what the bill says, what is still unclear, how Open Homes is preparing to support you, and what you should be asking your Brokerage, MLS, or Association or Realtors® as guidelines continue to develop.

 

What We Know: Understanding AB 723

While AB 723 is brief, the implications are significant. It amends the California Business and Professions Code by adding Section 10140.8, creating disclosure requirements for digitally altered real estate images.

 

(may show bill excerpt?)

 

What is a “Digitally Altered Image” Under AB 723?

According to Section 10140.8(b)(1), a digitally altered image is any image that has been edited—using photo software or artificial intelligence—to:

• Add, remove, or change elements of the property.
• These elements include, but are not limited to:
  • Fixtures
    
  • Furniture
    
  • Appliances
    
  • Flooring
    
  • Walls and paint color
    
  • Landscaping or hardscaping
    
  • Facades
    
  • Floor plans
    
  • Items outside the property (streetlights, views, utility poles, neighboring homes, etc.) 

The law seems to intentionally use broad language—“including but not limited to”—which means this definition may evolve. It does not list specific tools or services, so industry interpretation will play a major role over the next year.

 

What Is Not Considered a Digitally Altered Image?

Section 10140.8(b)(2) states that routine image corrections do not require disclosure when they do not change the representation of real property.

These acceptable adjustments include:

• Lighting corrections
  
• Sharpening
  
• White balance
  
• Color correction
  
• Angle or straightening adjustments
  
• Cropping
  
• Exposure
  
• Any other “common photo editing adjustments” that simply present the property accurately and clearly 

This is the category under which standard real-estate-industry image processing falls.

 

What Does the Law Require Agents to Do?

1. Include a Clear Disclosure on or Near the Altered Image

Agents must add a “reasonably conspicuous” statement “on or near the image” indicating the image has been altered.

2. Provide Access to the Original, Unaltered Images

The disclosure must include a link, URL, or QR code leading to the original image(s).

3. If the Agent Controls the Website, They Must Include the Unaltered Versions

If the ad appears on a website the agent controls, the unaltered images must be posted directly or accessible via a link.

4. Language Must Clearly State Where Buyers Can View the Originals

The disclosure must explicitly say that unaltered versions are available at the linked URL.

This applies to anyone acting on behalf of the agent, including marketing teams, assistants, etc.

A Quick Definition: What Is “Real Property”?

Under California state law and the California Association of Realtors (CAR):

• Real property includes land and anything permanently affixed to it.
  
• This means structures, fixtures, improvements, and the land itself.
  
• It does not include personal property or temporary items.
  

AB 723 focuses on representations of real property—the physical characteristics of the home and lot that would reasonably influence a buyer’s perception.

How Open Homes Edits Images Today

To help clarify what falls under “common editing adjustments” vs. “alterations,” here is what Open Homes does by default to all images—edits that do not require disclosure under Section 10140.8(b)(2):

Standard Photo Corrections (No Disclosure Required)

• White balance
  
• Exposure
  
• Shadows
  
• Highlights
  
• Lens correction
  
• Vignetting adjustments
  
• Contrast
  
• Saturation
  
• Color cast reduction
  
• Remove sensor dots
  
• Add blue skies
  
• Adjust verticals and horizontals
  
• Sharpness
  
• Noise reduction
  
• Chromatic aberration reduction
  
• Crop
  
• Resize 

These edits maintain truthful representation and fall squarely under the bill’s exclusions.

Alterations We Provide*

*These May Require Disclosure Under AB 723

Open Homes provides several optional free enhancements that change the representation of real property and may require disclosure:

Free Additional Retouching Options (Alterations*)

• Turn on lights
  
• Green grass
  
• Repair or replace grass
  
• Remove garden hoses or trash cans
  
• Blue pool or sea water
  
• Add pool water
  
• Remove pool cleaners
  
• Remove snow
  
• Remove cords
  
• Add fire to fireplace (we already provide both versions)
  
• Add TV/PC screens
  
• Add candles
  
• Remove carpet indentations
  
• Remove textile wrinkles
  
• Remove fridge clutter
  
• Fix driveway cracks
  
• Repair stucco or siding blemishes 

These adjustments alter elements of the property and therefore may fall under the “digitally altered image” definition in the bill.

Open Homes will continue to provide these services—but it will be up to the Agents to maintain compliance. Open Homes will continue to provide both versions that specifically fall under the current version of the law and can also provide any unaltered image at the agent request free of charge. 

What We’re Doing to Help Agents Prepare for AB 723

Open Homes is committed to making compliance simple, transparent, and built into your existing workflow.

1. Delivering Altered + Unaltered Images Clearly Labeled

• Label images in the media manager as “fire”
  
• Deliver file names that reflect the distinction
  
• Segment services such as virtual staging or decluttering automatically separate Media Manager Galleries

 

 

2. Providing Both Versions for Any Altered Image

For example:

• Fire in fireplace → you receive “with fire” and “without fire”
  
• Virtual staging → you receive staged and empty-room originals 

3. Property Websites Built for Supporting Disclosures

Open Homes property websites can help satisfy AB 723 requirements:

• Create a custom “Image Disclosure” gallery with altered + unaltered versions
  
• Add he altered and unaltered versions to the Gallery
• Add Brokerage/MLS needed text to image captions
• Use our built-in QR code generator to give buyers easy access
  
• Add disclosures directly to flyers, MLS-compliant materials, and your website 

This is one of the simplest, cleanest ways to meet the bill’s requirement for public access to original images.

Tell Us What Your Brokerage or MLS Is Saying

This bill is new, and industry guidance is still forming. Brokerages, associations, and MLSs may introduce:

• Standard disclosure language
  
• Labeling requirements
  
• File handling rules
  
• Placement guidelines for disclaimers
  

We want to hear from you. Drop a note in the comments below!
If your broker of record, local association, or MLS has shared guidance or draft rules, please let us know so Open Homes can support those standards proactively.