AB 723 Explained: California's New Real Estate Photo Disclosure Law
Starting January 1, 2026, California requires disclosure of AI-enhanced listing photos. Here's everything agents need to know to stay compliant.
AB 723 Explained: California's New Real Estate Photo Disclosure Law
If you're a real estate professional in California, you need to know about Assembly Bill 723. This new law, effective January 1, 2026, changes how you must handle digitally altered listing photos.
What is AB 723?
AB 723 requires real estate professionals to disclose when listing photos have been materially altered using AI, Photoshop, or other digital editing tools.
The goal? Protect buyers from misleading property representations while allowing legitimate photo enhancement.
Why This Law Exists
The rise of AI photo editing has created a crisis of trust in real estate:
Studies show buyers increasingly distrust listing photos. AB 723 aims to restore confidence through transparency.
What Counts as "Materially Altered"?
Requires Disclosure:
Generally Safe (No Disclosure):
Penalties for Non-Compliance
Failure to comply with AB 723 can result in:
How to Stay Compliant
1. Keep Original Photos
Store unaltered originals for at least 3 years. You may need to prove what changes were made.
2. Document Your Process
Create a side-by-side comparison of original and enhanced photos for your records.
3. Add Disclosure to Listings
Include a disclosure statement in your MLS listing:
> "Some photos in this listing have been digitally enhanced for optimal presentation. Original photos available upon request."
4. Use Compliant Tools
Choose photo enhancement tools that support compliance. PropertyAI includes:
Our Philosophy: Enhance, Don't Fake
At PropertyAI, we believe in ethical photo enhancement:
The goal is to show properties at their realistic best—not create fantasy versions.
The Bottom Line
AB 723 isn't about banning photo enhancement. It's about transparency.
Agents who embrace disclosure will build trust. Those who hide it risk their license and reputation.
PropertyAI is designed to help you stay compliant while creating stunning listing photos. Every enhancement is documented. Every original is preserved.
*Ready to enhance photos the compliant way?* Try PropertyAI free →
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for specific guidance.