Compliance guide for real estate professionals
Real estate agents in British Columbia must comply with the Real Estate Services Act, SBC 2004, c 42 (RESA), which governs real estate sales, rentals, and property management. RESA is enforced by the BC Financial Services Authority (BCFSA).
Under RESA, all real estate agents must comply with the Real Estate Services Rules, which prohibit publishing real estate advertising that the agent knows, or reasonably should know, contains false or misleading statements or misrepresentations about real estate.
BCFSA's Consumer Guide to Advertising identifies digitally altered or enhanced photos as forms of false or misleading advertising.
In February 2024, BCFSA published an Artificial Intelligence Guideline addressing the use of AI in real estate advertising. The guideline states: "While it may be okay to use an AI tool to virtually stage a house, you should label photos or videos that have been altered and enhanced so you do not mislead a potential buyer. Licensees may not create any advertising that is false or misleading – caution and clear labeling is imperative when utilizing AI technology for any kind of marketing."
The Superintendent of Real Estate enforces RESA and the Rules through investigations and disciplinary hearings. The Superintendent has authority to suspend, cancel, or apply conditions to a licensee's registration, and can impose discipline penalties and require completion of remedial education courses.
Local real estate boards may have additional specific requirements—always check your local board's rules.
Violations of RESA or the Real Estate Services Rules can result in disciplinary action by the Superintendent, including discipline penalties of up to $250,000 for individual licensees and up to $500,000 for brokerages (per contravention), mandatory remedial education courses, suspension or cancellation of registration, and conditions imposed on registration. Administrative penalties of up to $50,000 (per contravention) may be imposed for minor or moderate non-compliance. Licensees may also be required to disgorge profits obtained through misconduct and pay enforcement expenses. Certain violations may also result in prosecution as provincial offences, with fines of up to $1.25 million for corporations, and fines of up to $1.25 million and/or imprisonment for up to two years for individuals.
The Real Estate Services Rules prohibit 'false or misleading advertising.' Unlabelled virtual staging falls under this prohibition. Apply visible watermarks stating 'Virtually Staged' to each enhanced image, ensuring they're legible on REW.ca, Realtor.ca, and local real estate board systems.
While not legally required, including original, unstaged photographs in your listing gallery alongside virtually staged images significantly reduces complaint risk and builds buyer trust.
Keep records of where and when disclosures were made: MLS remarks, image watermarks, property information sheets, and verbal disclosures at showings. If BCFSA investigates a complaint, comprehensive documentation demonstrates due diligence.
Some BC real estate boards may have specific MLS rules regarding digitally altered images. Check whether your board requires specific disclosure fields, image labeling formats, or original photo requirements beyond provincial law.
"Images have been virtually staged to illustrate the property's potential. Furniture and decor 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 home features virtual staging to help you visualize its potential. The furniture shown is digitally added and not physically present. Schedule a showing to see the actual space. #VirtualStaging #RealEstate"
"This listing includes virtually staged photographs. Digital furniture and decor have been added to help you visualize the space. These items are not present in the physical property. Original photographs are available upon request."
"VIRTUALLY STAGED – Furniture shown is digitally rendered"
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