Applies to every listing after Jan 1, 2026
AB 723 and virtual staging: what California agents have to disclose
Virtual staging is one of the cleanest fits for the new California Digitally Altered Photo law. Here's exactly what counts, what disclosure has to look like, and how to keep your CRMLS listings compliant.
TL;DR
- Virtual staging counts as digitally altered under AB 723. Disclosure is required.
- Even one piece of added furniture in an empty room triggers the rule.
- The disclosure has to appear on or directly next to the image, in language a buyer would recognize.
- You also have to provide a way for viewers to see the original unstaged photo.
- The legal responsibility is yours as the listing agent, not the staging vendor's.
- The rule applies to MLS, websites, social media, and print equally.
What counts as virtual staging
For AB 723 purposes, virtual staging is any digital addition or replacement of an element that wasn't physically present in the home when the photo was taken. The most common cases:
- Adding furniture to an empty room
- Replacing existing furniture with different (usually nicer) furniture
- Adding art, plants, rugs, lamps, or other decor
- Swapping kitchen finishes (countertops, cabinets, hardware)
- Replacing flooring (hardwood over tile, new carpet)
- Adding fixtures that don't exist (ceiling fans, pendant lights)
- Repainting walls digitally
- Cleaning up landscaping (greening brown grass, adding flowers)
What doesn't count
AB 723 doesn't target normal photographic adjustments. You can still:
- Correct exposure, white balance, contrast, and color
- Crop, straighten, and de-skew
- Remove small lens artifacts (dust spots, minor flares)
- Apply tasteful sharpening or noise reduction
- Use HDR processing on multiple exposures of the same scene
- Brighten dark rooms within reason (without changing what's in them)
The dividing line is whether a buyer standing in the property would see the same thing as the photo. If the answer is no because of an added or changed element, you're in disclosure territory.
The disclosure rule, applied to staging
Two requirements, every time:
- Visible disclosure on or next to the image.“Digitally Altered” is the safest phrasing. “Virtually Staged” also works and tends to feel less alarming to buyers. The text needs to stay readable at the resolution the MLS displays photos at, including thumbnails.
- Access to the original. Viewers must be able to see the unstaged version. In practice that means a public link in the listing description, an MLS notes field, or a separate hosted gallery.
A compliant workflow with staging vendors
- Shoot the empty property as you normally would. Keep the raw originals organized and accessible.
- Send the original photos to your virtual staging vendor.
- Specify in writing that you need both the staged version AND the disclosure watermark burned into the file. Some vendors offer this as an add-on. Some still don't.
- When you receive the staged photos back, verify the disclosure is readable at thumbnail size. If it isn't, ask for a re-render.
- Upload to MLS. Add a line in the listing description like “Photos digitally staged. Original photos available on request or at [URL].”
- When you post to Zillow, Redfin, Instagram, Facebook, your website, or flyers, make sure the staged photos still carry the disclosure. The most common failure mode is auto-cropping that chops off the corner watermark.
Common mistakes that lead to citations
- Watermark too small to read at MLS thumbnail size
- Watermark placed where MLS auto-crops will cut it off
- Using vague language like “Edited” or “Enhanced”
- Posting staged photos without disclosure on social media even if the MLS version has it
- No publicly accessible link to the original photo
- Relying on the vendor's default output without checking
Penalties for staging without proper disclosure
AB 723 violations stack across multiple enforcement bodies:
- CRMLS citation on first offense, no warning. Fines start at a few hundred dollars per listing.
- Repeated infractions can trigger MLS access suspension.
- California Department of Real Estate can impose its own discipline, including mandatory continuing education or license suspension for willful violations.
- Civil exposure if a buyer relies on a misleading staged photo and can demonstrate damages.
Read the full breakdown at AB 723 penalties for real estate agents.
Frequently asked questions
Does virtual staging count as digitally altered under AB 723?
Yes. Adding furniture, art, fixtures, finishes, or any visual element that wasn't physically present in the home counts as digitally altered. The image needs a clear disclosure plus a way for viewers to access the original unaltered version.
Can I virtually stage an empty room without disclosure?
No. Even a single piece of added furniture in an otherwise-empty room triggers the AB 723 disclosure requirement. The legal threshold is whether the photo shows something a buyer wouldn't see standing in the room on a typical day.
Does the virtual staging company handle the disclosure for me?
Some do, most don't yet. The legal responsibility sits with the listing agent and their broker, not the vendor. Even if a staging company adds a watermark, the agent has to verify it appears on every channel where the photo is posted (MLS, Zillow, IG, flyers).
What disclosure language works for staged photos?
"Digitally Altered" is the safest. "Virtually Staged" is also widely accepted. Avoid vague phrases like "Edited" or "Enhanced" without context, since those don't clearly communicate that the image differs from reality.
Where does the disclosure have to appear?
On the image itself (a watermark) or immediately next to it (a caption visible without scrolling). Burying it in fine print or in a separate document doesn't satisfy the requirement.
Do I also need to provide the original unstaged photo?
Yes. AB 723 requires viewers to have a way to access the unaltered version. In practice this means linking to the original in the listing description, MLS notes, or a publicly accessible URL.
What about virtual staging in social media posts?
Same rule. AB 723 applies anywhere the staged image is shown, including Instagram, Facebook, YouTube, Threads, X, and print marketing. The disclosure travels with the image.
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