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New Law AB 723 – Disclosure Required for Digitally Altered Property Images & FAQ

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Effective January 1, 2026, California Assembly Bill 723 requires real estate professionals to clearly disclose when images used in advertising or listings have been digitally altered and to provide access to the original, unaltered images when those altered images are made public.

Two new sections will be added to the CCAR MLS Rules and Regulations Effective Jan. 1. 2026

  • 11.5.1 Definition of Digitally Altered Images – Defines digitally altered images as provided under California law.
  • 11.5.2 Digitally Altered Images – Explains how digitally altered images must be treated when inputted in the MLS.

How Does this Affect Photograph Requirements in the MLS?
To support compliance with California’s new law regarding digitally altered property images (AB 723), CCAR will be implementing a standardized approach within the MLS.

Going forward, when a digitally altered image is used in a listing:

  • The digitally altered image must be displayed first,
  • The original, unaltered image must immediately follow, and
  • The altered image must include a photo label clearly disclosing that the image has been digitally altered.

To add a photo label within the MLS, please follow the instructions below:

  • Go to ‘Maintain Listing’;
  • Go to the ‘Add/Edit Pictures’ module;
  • Add listing photos and select ‘Add Label’ for the digitally altered images;
  • Type into the ‘Label’ field that the photo is digitally altered (i.e. “altered,” “digitally altered,” “AI altered,” or some accurate substantially similar term).

This approach allows the MLS to clearly present both versions of the image while maintaining transparency for consumers and consistency for Participants and Subscribers.

FREQUENTLY ASKED QUESTIONS

Q: What is a digitally altered image?
A: As a threshold matter, it is important to understand what is considered a digitally altered image under the new law. AB 723 defines “digitally altered image” as:

  • an image, created by or at the direction of the real estate broker or salesperson, or person acting on their behalf
  • that has been altered through the use of photo editing software or artificial intelligence
  • to add, remove, or change elements in the image, including, but not limited to, fixtures, furniture, appliances, flooring, walls, paint color, hardscape, landscape, façade, floor plans, and elements outside of, or visible from, the property, including, but not limited to, streetlights, utility poles, views through windows, and neighboring properties.

While AB 723’s definition of “digitally altered image” seems to mostly target items that are part of the property (e.g., fixtures) or features of the property (e.g., views through windows), real estate licensees should take note that the definition also includes furniture. This means that if a real estate licensee uses virtual staging to add, remove, or change furniture in the property, they will need to disclose that the images have been digitally altered.

Q: How do I disclose digitally altered images in the MLS?
A:

  • Go to ‘Maintain Listing’;
  • Go to the ‘Add/Edit Pictures’ module;
  • Add listing photos and select ‘Add Label’ for the digitally altered images;
  • Type into the ‘Label’ field that the photo is digitally altered (i.e. “altered,” “digitally altered,” “AI altered,” or some accurate substantially similar term).

Q: Do I need to upload both edited and unedited versions of a photo?
A: Yes. Ensure that the original, unaltered version is displayed immediately after the digitally altered image.

Q: Does this apply to listings entered before January 1, 2026?
A: Participants and Subscribers are encouraged to review current listings in the Active, Pending, and Hold statuses and make add necessary photo labels to disclose digitally altered images.

Q: What is NOT a digitally altered image?
A: Specifically excluded from the definition of “digitally altered images” are images “where only lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure, or other common photo editing adjustments are made that the not change the representation of the real property.”

Q: Does AB 723 apply to leases?
A: Yes, but only if the lease exceeds one year’s duration.

Q: Is virtual staging allowed?
A: Yes. Virtual staging is allowed, but virtually staged photos must be clearly labeled, and the unedited version must immediately follow each virtually staged photo.

Q: Who is responsible for compliance, the agent or the photographer?
A: The listing agent and broker are responsible for ensuring all listing content complies with MLS rules, regardless of who created or edited the photos.

Leadership Playbook

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Dear Friends and Colleagues,

Welcome to your first District update of the year. I am Victor Reyes, CCAR Director and Board Liaison, representing those of you who conduct business in the West Contra Costa County area. I serve as your direct connection to CCAR leadership, and will share key updates with you, as well as bring your feedback to the Board.

In this first email of the year, you’ll find timely insights on insurance considerations, new California real estate laws taking effect in 2026, and practical information to support your business.

I look forward to staying connected with you throughout the year. I am here to listen, share updates, and bring your feedback forward. Feel free to reach out to me any time—we always want to hear from you. | MEET YOUR BOARD OF DIRECTORS >

Warm regards,

Victor

Top Tips to Get Insurance in Fire-Prone Areas

In this challenging insurance market, it is important for homebuyers to be proactive, diligent, and patient. Below are the five top tips for homebuyers in finding insurance:

 

CCAR ANNUAL SPONSORS

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2026-inaugural-program

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District 5 Reyes – Jan 26

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Victor Reyes masthead + link to email

Dear Friends and Colleagues,

Welcome to your first District update of the year. I am Victor Reyes, CCAR Director and Board Liaison, representing those of you who conduct business in the West Contra Costa County area. I serve as your direct connection to CCAR leadership, and will share key updates with you, as well as bring your feedback to the Board.

In this first email of the year, you’ll find timely insights on insurance considerations, new California real estate laws taking effect in 2026, and practical information to support your business.

I look forward to staying connected with you throughout the year. I am here to listen, share updates, and bring your feedback forward. Feel free to reach out to me any time—we always want to hear from you. | MEET YOUR BOARD OF DIRECTORS >

Warm regards,

Victor

CAR Legal Hotline Ad
CA Housing Market: Navigating Rates, Demand and Change Virtual Panel Discussion ad + Link to register

Top Tips to Get Insurance in Fire-Prone Areas

In this challenging insurance market, it is important for homebuyers to be proactive, diligent, and patient. Below are the five top tips for homebuyers in finding insurance:

Plan ahead and seek the assistance of insurance agents – Start shopping for insurance early! It takes time to complete applications and obtain quotes. When contacting agents, check to see if they work exclusively with one insurance company or has access to multiple carriers. Keep track of which insurance companies are being contacted to make sure there is a thorough search of all options. Use this tool from the California Department of Insurance for finding an agent or broker near you. 

Check for policies written by admitted insurance companies. It is only admitted insurance companies that are backed by the California Insurance Guarantee Association (CIGA). They must file their rates and policy forms with the California Department of Insurance (DOI) and, most importantly, they are part of CIGA, which provides protections if the carrier becomes insolvent. The DOI has a list of admitted insurance companies >. 

Compare types and limits of coverage, and feel free to ask questions. You can compare the types of coverage and limits using the DOI coverage comparison tool. Also remember to check whether the insurance company will lower the quote for fire hardening (e.g., clearing trees or brush around the perimeter, or having fire-resistant roof materials).

If coverage isn’t available through an admitted carrier, consider surplus lines (non-admitted) insurance. These carriers don’t file rates or forms with the DOI and aren’t part of CIGA, meaning no CIGA protection if the carrier becomes insolvent. However, they often offer more flexible options. Be sure to evaluate the carrier’s financial strength using a service such such as A.M. Best to determine whether it offers the best solution.

The Fair Plan is available as a last resort. If there are no other options, you or your insurance agent should contact California FAIR Plan at 1 (800) 339-4099. The FAIR Plan policy can be expensive, and it only covers certain losses caused by fire and smoke. For other perils such as theft and liability, consumers will need to buy Differences in Conditions (DIC) insurance to fill the gaps. List of DIC carriers >.

New CA Real Estate Laws Effective Jan 2026

A collection of new laws have been passed by the California Legislature that may affect REALTORS® in 2026. Following are the summaries of the most noteworthy among them. For the full text of a law, click on the C.A.R. link below.

HOA Balcony Inspection Disclosures (SB 410) Condo associations must include the most recent balcony inspection report in the standard HOA disclosure package, improving transparency and helping buyers meet lender requirements.

Digitally Altered Images in Advertising (AB 723) New rules apply when using digitally altered images in real estate advertising, including listings, mobile homes, and leases over one year.

Buyer Representation Agreement Regulations Buyer representation agreements and renewals are now limited to 90 days. Agreements exceeding 90 days are void and unenforceable, though the start date may be deferred.

Thirdhand Smoke Disclosure (AB 455)
Sellers must disclose actual knowledge of tobacco or nicotine residue and any history of smoking on the property.

Rental Habitability: Refrigerators & Stoves (AB 628) Landlords must provide working refrigerators + stoves with limited exceptions (for leases entered into, amended, or extended on or after Jan-1-26).

| REVIEW LAWS >

New Referral Fee Disclosure Form, Tools & Resources

To support clear and consistent disclosure, C.A.R. released new and updated forms, including the revised REALTOR® Acknowledgement and Disclosure Form (RAD). The updated form provides a standardized way to disclose referral-related compensation and other required disclosures.

To help members navigate these changes, C.A.R. also launched new support resources, including:

  • A Legal FAQ
  • Quick Guides
  • Legal Live Webinar videos

These tools explain when the RAD should be used, what must be disclosed, and how the updates align with current legal requirements. | LEARN MORE >

New Insurance Rules available + link

CCAR ANNUAL SPONSORS

LeadHax logo/link

District 4 Wilson – Jan 26

by

Rolanda Wilson masthead + link to email

Dear Friends and Colleagues,

Welcome to your first District update of the year. I am Rolanda Wilson, CCAR Director and Board Liaison, representing those of you who conduct business in the San Ramon Valley area. I serve as your direct connection to CCAR leadership, and will share key updates with you, as well as bring your feedback to the Board.

In this first email of the year, you’ll find timely insights on insurance considerations, new California real estate laws taking effect in 2026, and practical information to support your business.

I look forward to staying connected with you throughout the year. I am here to listen, share updates, and bring your feedback forward. Feel free to reach out to me any time—we always want to hear from you. | MEET YOUR BOARD OF DIRECTORS >

Warm regards,

Rolanda

CAR Legal Hotline Ad
CA Housing Market: Navigating Rates, Demand and Change Virtual Panel Discussion ad + Link to register

Top Tips to Get Insurance in Fire-Prone Areas

In this challenging insurance market, it is important for homebuyers to be proactive, diligent, and patient. Below are the five top tips for homebuyers in finding insurance:

Plan ahead and seek the assistance of insurance agents – Start shopping for insurance early! It takes time to complete applications and obtain quotes. When contacting agents, check to see if they work exclusively with one insurance company or has access to multiple carriers. Keep track of which insurance companies are being contacted to make sure there is a thorough search of all options. Use this tool from the California Department of Insurance for finding an agent or broker near you. 

Check for policies written by admitted insurance companies. It is only admitted insurance companies that are backed by the California Insurance Guarantee Association (CIGA). They must file their rates and policy forms with the California Department of Insurance (DOI) and, most importantly, they are part of CIGA, which provides protections if the carrier becomes insolvent. The DOI has a list of admitted insurance companies >. 

Compare types and limits of coverage, and feel free to ask questions. You can compare the types of coverage and limits using the DOI coverage comparison tool. Also remember to check whether the insurance company will lower the quote for fire hardening (e.g., clearing trees or brush around the perimeter, or having fire-resistant roof materials).

If coverage isn’t available through an admitted carrier, consider surplus lines (non-admitted) insurance. These carriers don’t file rates or forms with the DOI and aren’t part of CIGA, meaning no CIGA protection if the carrier becomes insolvent. However, they often offer more flexible options. Be sure to evaluate the carrier’s financial strength using a service such such as A.M. Best to determine whether it offers the best solution.

The Fair Plan is available as a last resort. If there are no other options, you or your insurance agent should contact California FAIR Plan at 1 (800) 339-4099. The FAIR Plan policy can be expensive, and it only covers certain losses caused by fire and smoke. For other perils such as theft and liability, consumers will need to buy Differences in Conditions (DIC) insurance to fill the gaps. List of DIC carriers >.

New CA Real Estate Laws Effective Jan 2026

A collection of new laws have been passed by the California Legislature that may affect REALTORS® in 2026. Following are the summaries of the most noteworthy among them. For the full text of a law, click on the C.A.R. link below.

HOA Balcony Inspection Disclosures (SB 410) Condo associations must include the most recent balcony inspection report in the standard HOA disclosure package, improving transparency and helping buyers meet lender requirements.

Digitally Altered Images in Advertising (AB 723) New rules apply when using digitally altered images in real estate advertising, including listings, mobile homes, and leases over one year.

Buyer Representation Agreement Regulations Buyer representation agreements and renewals are now limited to 90 days. Agreements exceeding 90 days are void and unenforceable, though the start date may be deferred.

Thirdhand Smoke Disclosure (AB 455)
Sellers must disclose actual knowledge of tobacco or nicotine residue and any history of smoking on the property.

Rental Habitability: Refrigerators & Stoves (AB 628) Landlords must provide working refrigerators + stoves with limited exceptions (for leases entered into, amended, or extended on or after Jan-1-26).

| REVIEW LAWS >

New Referral Fee Disclosure Form, Tools & Resources

To support clear and consistent disclosure, C.A.R. released new and updated forms, including the revised REALTOR® Acknowledgement and Disclosure Form (RAD). The updated form provides a standardized way to disclose referral-related compensation and other required disclosures.

To help members navigate these changes, C.A.R. also launched new support resources, including:

  • A Legal FAQ
  • Quick Guides
  • Legal Live Webinar videos

These tools explain when the RAD should be used, what must be disclosed, and how the updates align with current legal requirements. | LEARN MORE >

New Insurance Rules available + link

CCAR ANNUAL SPONSORS

LeadHax logo/link
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