A new California law that took effect on January 1 is changing how homes are presented online and it is a meaningful shift for both buyers and sellers. The goal is simple to bring more transparency to real estate photos and help buyers better understand what they are actually seeing before they schedule a showing.

For years, buyers have complained about homes looking dramatically better online than they do in person. Advances in photo editing and artificial intelligence have only widened that gap. California Assembly Bill 723 is designed to address that issue by requiring clear disclosure when listing photos have been digitally altered.

What the New Law Requires

Under the new rules, real estate agents and brokers must disclose when a property image has been digitally modified in a way that changes what is shown. This includes edits that add remove or alter elements such as furniture fixtures appliances flooring walls paint landscaping exterior features views or neighboring properties.

The disclosure must be easy to notice and applies to online listings brochures advertisements and other promotional materials. In addition to the disclosure agents must also make the original unaltered photo available. This can be done by placing the original image next to the edited one or by providing a link or QR code that allows viewers to see the original version.

What Is and Is Not Covered

The law focuses on digital changes made after a photo is taken. It does not address the use of wide angle lenses which have long been used to make rooms appear larger. Routine photo adjustments such as cropping color correction exposure balancing and sharpening also do not require disclosure as long as they do not change the actual representation of the property.

Virtual staging is one of the biggest areas affected by the new law. Adding digital furniture decor or finishes to an empty space now requires clear labeling. The same applies to edits that create features that do not exist in reality such as upgraded kitchens altered views or enhanced exterior elements.

Why This Law Matters Now

Photo manipulation has been part of real estate marketing for decades but artificial intelligence has dramatically lowered the barrier to entry. Today nearly anyone can add features to a photo with minimal effort or technical skill. While some edits are harmless others can be misleading especially when they create rooms or views that do not exist at all.

California is the first state to require explicit disclosure of altered real estate images and other states are beginning to follow. The intent is not to eliminate professional photography or thoughtful presentation but to set clearer expectations and protect consumers from being misled.

How MLS Platforms Are Adapting

Multiple Listing Services across California are updating their systems to comply with the law. In San Francisco the MLS now includes a feature that allows agents to flag images as digitally altered. When selected a visible watermark appears on the image indicating that it has been modified.

This approach helps ensure disclosures carry through to major real estate platforms where most buyers first encounter listings. It also encourages agents to be more selective and thoughtful about how much digital alteration they use.

What This Means for Buyers and Sellers

For buyers this law provides an added layer of clarity. It makes it easier to distinguish between a home that is beautifully presented and one that has been digitally reimagined.

For sellers and agents it reinforces the importance of accurate representation. Strong marketing still matters but trust and transparency matter more. In many cases the result will be fewer heavily altered images and more emphasis on presenting homes honestly and professionally.

Enforcement and Compliance

The law does not set specific fines or penalties for noncompliance. Instead enforcement falls under the California Department of Real Estate which already oversees advertising standards. Consequences depend on the severity of the violation and can range from corrective action to more serious disciplinary measures.

The Bigger Picture

This law reflects a broader shift in real estate marketing toward transparency as technology evolves. Buyers rely heavily on online listings to decide where to spend their time and energy. Clear disclosures help set realistic expectations and create a better experience for everyone involved.

As a real estate agent in San Francisco, I see this as a positive step. Accurate photos build trust reduce wasted showings and lead to smoother transactions. In a competitive and fast-moving market, honesty remains one of the strongest tools we have.

If you have questions about how listing photos are handled or what to expect when viewing homes, feel free to reach out. Clear information always leads to better decisions.

 

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Source: sfchronicle.com