Assembly Bill 723 And The Future Of Honest Real Estate Marketing

Beginning January 1, 2026, California will introduce a new rule that reshapes the way properties are presented in real estate marketing. The law requires agents and brokers to disclose when any listing photo has been digitally altered. The intention is to create clarity for buyers and to ensure that the visual story of a home is rooted in reality rather than digital enhancement.

Understanding the New Requirement

California will introduce a significant update to real estate marketing on January 1, 2026. Under Assembly Bill 723, any photograph used to advertise or promote a property must include a clear disclosure if the image has been digitally altered. The law applies to real estate agents, brokers and anyone acting on their behalf who publishes marketing materials.

A photograph is considered digitally altered when it changes the physical appearance of the property. This includes adding or removing furniture, adjusting architectural features, modifying landscaping, altering views, replacing finishes or updating surfaces that do not exist in the real space. Tools driven by artificial intelligence are included within this definition.

Standard photo corrections do not require disclosure. Adjustments that improve clarity, exposure, brightness or color balance are viewed as acceptable enhancements. These changes do not alter the actual condition of the home and do not affect a buyer’s understanding of the property.

The law also requires that the original, unedited photograph be made available to the viewer. This can be done through a link, a QR code or a side by side presentation on a website controlled by the agent or brokerage. The intention is to offer complete transparency and to prevent any misrepresentation of the property.

What Happens When The Disclosure Is Not Provided

Failing to disclose a digitally altered photograph carries meaningful consequences for anyone involved in real estate marketing. The requirement has been written into the Real Estate Law, which means that a violation is treated as a breach of the standards that govern licensed professionals in California. The result can include both legal and professional penalties.

The state may treat the violation as a misdemeanor. This allows for monetary fines that can range from one hundred dollars to five thousand dollars per occurrence. These fines reflect the seriousness of presenting imagery that can mislead a buyer about the true condition of a property.

The California Department of Real Estate also has the authority to impose administrative discipline. This can include citations, formal warnings, mandatory education, suspensions or in more serious cases the loss of a real estate license. The department evaluates whether the conduct created a deceptive or inaccurate presentation of the property and whether the professional acted responsibly.

There is also the possibility of civil exposure. A buyer who feels misled may pursue a claim if the altered images influenced their decision to view or purchase the home. Even when a dispute does not advance to litigation, the process of defending a claim can be costly and disruptive.

The reputational impact can be equally significant. Trust is central to real estate. When buyers discover that images were changed without disclosure, confidence is lost and that loss can affect future clients and referrals. The requirement is easy to follow and it ensures that the story shown online reflects the true experience of the home. It protects the buyer and protects the professionals who represent the property.

Why This Matters For Buyers

For many buyers, a first impression happens long before a showing. It begins online, where photos guide expectations. When an image is overly edited, the gap between expectation and reality grows. This new law helps close that gap. It protects buyers from disappointment and gives them a clearer understanding of a home before they invest their time.

Transparency builds confidence. When the marketing reflects what the home truly offers, buyers approach the property with more trust and less hesitation. This supports more meaningful showings and more informed decisions.

How This Law Elevates High Quality Staging

The new rule does more than shape photography. It highlights the value of real, thoughtful, intentional staging. When buyers know that photos represent the actual space, good staging becomes even more influential. It allows design to speak for the home without relying on digital tricks.

Authentic staging creates an emotional experience. It brings proportion, softness and cohesion to rooms that may feel disconnected without guidance. A well composed living space invites buyers to imagine themselves within it. This effect is powerful because it exists in the real world and not just on a screen.

For sellers, this encourages preparation and care. Homes that are cleaned, refreshed and styled with intention will naturally rise above competing listings. The work becomes purposeful. Every piece of furniture and every layer of texture tells a story that buyers can feel when they enter.

For agents, the law creates balance. Properties that invest in professional staging gain a true advantage. The visual identity online matches the experience of the home in person. This creates trust, which leads to stronger engagement and more serious offers.

The Impact On Market Presentation

As digital alterations become more regulated, the market will shift toward authenticity. The properties that shine will be the ones that are genuinely ready for photography. This means clean surfaces, repaired details, curated furnishings and thoughtful styling.

The law invites a return to craftsmanship and preparation. It encourages agents and sellers to rely on design rather than distortion. It rewards creativity and intention. It also raises the standard for real estate marketing throughout California.

Looking Ahead

California’s new photo disclosure rule signals a meaningful change in how homes will be represented. It supports honesty. It elevates design. It restores the connection between the image on the screen and the space that buyers experience. As the industry adjusts, staging will play an even more essential role in shaping that connection.

Homes presented with care will continue to capture attention. Authenticity will become a new form of luxury. And buyers will feel the difference from the moment they click on a listing to the moment they step inside.