AB 723 watermark requirements: what California listing photos actually need

What the law actually requires

AB 723 doesn't mandate a specific font, size, or color. What it does require is that the disclosure be:

• Visible at the typical resolution the image will be displayed at
• Not removable by ordinary means (so flattened, not a separate layer)
• In language a reasonable viewer would understand as a disclosure
• Placed on the image or immediately adjacent to it, not buried in fine print

That last point is the one most agents miss. A line in the listing description below the photo carousel doesn't qualify because a buyer scrolling photos may never see it. The disclosure has to travel with the image itself.

The phrasing

The safest options:

• “Digitally Altered” mirrors AB 723's exact language. Use this if you're unsure which category fits.
• “Virtually Staged” works when the alteration is specifically staging (added furniture or decor). More palatable to buyers than “Digitally Altered.”
• “AI-Enhanced” works when AI tools modified the image. Use cautiously: some interpretations require more specific language.

What to avoid:

• “Edited” or “Enhanced” alone. Too generic. A reasonable viewer might think you just adjusted color.
• Logos or abstract symbols. The disclosure has to be readable text.
• Foreign-language disclosures unless the surrounding marketing is also in that language.

The placement

Best practices for where to put the watermark:

• Bottom-right corner is the most common. Most MLS auto-crops preserve the corners.
• Bottom-center works when the corners would interfere with a horizon line or focal point.
• Inset from the edge by at least 3% of the image width so MLS thumbnail cropping doesn't cut it off.
• White text with a 50% black drop shadow stays readable against most backgrounds. Pure black or pure white alone fails on busy backgrounds.
• Sans-serif fonts read more clearly at small sizes. Arial, Helvetica, or system sans-serif all work.

The visibility test

Before you upload, do this:

1. Open the photo at 200x150 px (typical CRMLS thumbnail size).
2. Can you read the watermark? If yes, you're compliant. If no, increase the font size and re-export.
3. Open it again at the size your MLS displays the main image (usually 1024px wide). The watermark should still be subtle, not overwhelming.

A common failure: a watermark that looks fine at full resolution but becomes a blurry smudge at thumbnail size. That fails the visibility test.

How to add a watermark in common tools

Photoshop

File → Open the staged photo. Text tool, click in bottom-right, type “Digitally Altered.” Layer Style → Drop Shadow → 50% opacity, 5px distance. Layer → Flatten Image. File → Export As → JPEG quality 85.

Lightroom Classic

File → Library → Edit → Edit Watermarks. Create a text watermark with “Digitally Altered,” set position to bottom-right with inset, save preset. Apply during Export.

Canva

Upload the photo, add a text layer with “Digitally Altered,” position bottom-right, apply a shadow effect, download as JPEG.

macOS Preview (built-in)

Open the photo, View → Show Markup Toolbar, T to add text, type “Digitally Altered,” position in corner, set color to white. File → Export to flatten the result into a JPEG.

The other half: access to the original

AB 723 has two requirements, not one. The watermark covers the “visible disclosure” piece. You also have to give viewers a way to access the unaltered original.

In practice this means:

• A line in the MLS listing description: “Original unaltered photos available at [URL]”
• The URL points to a public Dropbox, Google Drive, or hosted gallery
• The originals stay accessible for at least the listing's active period plus 30 days

Frequently asked questions