The California real estate landscape is evolving alongside advances in digital images and AI. To maintain transparency and consumer trust, the state has enacted Assembly Bill 723 (AB723).

Effective January 1, 2026, AB 723 mandates that any listing containing digitally modified images must be transparently disclosed to potential buyers.
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“A Participant or Subscriber who submits any digitally created or altered image must also (i) submit the original, unaltered version of the digitally altered image, and (ii) ensure that the digitally altered image is marked in a reasonably conspicuous manner as “altered,” “digitally altered,” “AI altered,” or some accurate, substantially similar, term.”

Under the amended rule, any licensed broker or real estate agent in the state of California submitting a digitally created or altered image must:

• Submit the original, unaltered version of the image alongside the edited version.‍
• Apply a label to the edited image using terms such as “Altered”, “Digitally Altered”, “AI Altered”, or a similar descriptor.

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What Requires Disclosure?

Under AB723, any modification that changes the physical characteristics or contests of a property (whether interior or exterior) qualifies as a digital alteration.

• Virtual Staging: Adding furniture, decor, or lifestyle elements to an empty room.
• Object Removal: Deleting permanent fixtures (columns, baseboards) or personal property (furniture, wall art).‍
• External Modifications: Removing “eyesores” such as power lines, streetlights, or neighboring properties.
• Digital Renderings: Any computer generated image of a structure not yet built on a lot.
• Property Renovations: Digitally changing flooring, painting walls, or enhancing landscaping.

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It’s important to note that the language in this new law is written broadly and does not name specific tools or services, allowing its interpretation to evolve over time.

What Does NOT Require Disclosure?

Standard photographic base edits that aim to represent the home accurately as it exists in real life do not require a disclaimer or submission of original files.

• Color & Light Correction: Adjusting white balance, exposure, contrasts, and brightness. 
• Compositional Tweaks: Image resizing, cropping, and minor angle adjustments.‍
• Standard Processing: Technical enhancements that correct lens distortions or noise without adding or removing physical elements.

These edits are currently being completed under the standard Aerial Canvas process and should not require disclosure under Section 10140.8(b)(2). Aerial Canvas aims to maintain an accurate representation of the property and align with the bill’s exclusions in every project. While sky replacements have been a talking point in the industry with AB 723 taking effect, they are not explicitly addressed in the bill and have long been a standard practice in the real estate photography.

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What Aerial Canvas Is Doing to Assist Clients?

Aerial Canvas is committed to providing our clients with stunning visuals that remain fully compliant with California’s ever-evolving standards. Aerial Canvas will do the following: 

• Deliver photography within our usual turnaround times without delays (see our Terms of Service for details)
• Include both altered and unaltered images that may require disclosure in our delivery platforms
• Label altered photos with file names that clearly distinguish them from unaltered versions
• Organize altered images that may require disclosure, such as virtual staging, digital renderings, and renovations in their respective categories on the Project Delivery Page
• Allow clients to add a disclaimer in the dedicated listing websites provided by Aerial Canvas
• Add disclaimers to print material produced by Aerial Canvas

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Liability and Responsibility

It is important to note that licensed brokers and agents are ultimately responsible for ensuring their listings remain compliant with MLS regulations and state law. While service providers assist in creating the media, the legal burden of disclosure and accurate representation rests with the listing party.

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Navigating new legislation can feel overwhelming, but you don’t have to do it alone. At Aerial Canvas, our team is well versed in these new standards and if you are unsure whether a specific edit requires disclosure we are here to provide clarity and peace of mind.

Disclaimer language, brokerage guidelines, processes, and other amendments may happen in 2026. If you have any questions about how your upcoming shoots might be affected by AB 723, our team is here to help you navigate these changes with confidence. If you have specific requests for your upcoming projects, don't hesitate to contact us.