Compliance guide for real estate professionals
NSW introduced legislation in June 2025 requiring digitally altered images to be clearly labeled. Landmark rulings like the Penshurst water tower case established that removing undesirable features is deceptive.
Individuals: up to $5,500. Businesses: up to $22,000. Serious ACL breaches: up to $50 million for corporations.
Under the 2025 legislation, every digitally altered image must be clearly labeled. Use a semi-transparent watermark reading 'Virtually Staged' or 'Digitally Altered' positioned in a corner where it won't be cropped. The watermark must remain visible at all display sizes used in portals like realestate.com.au and Domain.
Keep high-resolution original photographs in your records and make them available to prospective buyers upon request. Many agents now include a gallery section showing both staged and original versions side-by-side in their online listings.
Following the Penshurst water tower case, NSW courts have made clear that removing external features like power lines, water towers, or neighboring structures is deceptive conduct. Even seemingly minor changes like digitally enhancing lawn colour or using lens distortion to make rooms appear larger can breach the ACL.
Keep a record of which images were staged, what was added, and where disclosures were made (listing description, image watermarks, etc.). This documentation protects you if a complaint is lodged with NSW Fair Trading.
Ensure everyone in your agency understands the new disclosure obligations. This includes administrative staff who upload images and any external photographers or stagers you work with. The penalties apply to the business, so agency-wide compliance is essential.
"Images have been virtually staged to illustrate the property's potential. Furniture and décor shown are digitally rendered and are not included with the property. Please refer to the original photographs for an accurate representation of the property's current condition."
"This property features virtual staging to help you visualise its potential. The furniture shown is digitally added and not physically present. Book a viewing to see the actual space. #VirtualStaging #PropertyMarketing"
"This listing includes virtually staged photographs. Digital furniture and décor have been added to help you visualise the space. These items are not present in the physical property. Unstaged photographs are available upon request."
"VIRTUALLY STAGED – Furniture shown is digitally rendered"
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