2026 compliance guide for real estate professionals • Reviewed September 10, 2026
Since January 1, 2026, Business and Professions Code §10140.8 requires brokers, salespersons, and people acting on their behalf to disclose covered digitally altered images in real-property sale advertising. A conspicuous statement on or beside the image must identify the alteration and direct viewers to a public link, URL, or QR code identifying the original. Controlled websites must include the original or a qualifying public link. Adding or removing furniture, changing property features, or modifying surroundings can trigger the rule. Routine photo corrections are excluded only when they do not change the property's representation. MLS rules can add stricter requirements.
The DRE warns that inaccurate AI advertising, missing disclosures, and inadequate broker supervision may lead to license discipline. §10140.8 does not specify an automatic fine per altered image. MLS enforcement is separate; verify the current schedule with your MLS.
Use the image-level statement and public original-image access described above. A label alone or originals available only on request do not meet those requirements.
CRMLS Rule 11.5.2 requires the original immediately before or after the altered photo and an accurate alteration label in the photo description. Its FAQ says a photographer-added watermark is not required. Other California MLSs may use different workflows.
CRMLS prohibits changes to real-property elements unless the listed property will match those changes at closing as part of the listed price. Changes to outside elements such as neighboring properties and window views are prohibited. Disclosure does not override these restrictions.
The DRE's March 2026 advisory explains that responsibility remains with the licensee and broker when AI creates misleading output. Review property accuracy, required disclosures, and distribution before publication; retain the originals and a record of that review.
Describe the edits accurately and replace every bracketed placeholder. Check the required wording, image placement, MLS fields, and original-photo access described above. Use custom image labels only where permitted. A template does not authorise an otherwise prohibited or misleading alteration.
“This image has been digitally altered. View the original, unaltered image at: [PUBLIC ORIGINAL-IMAGE URL].”
“Identified images have been virtually staged. Image-level disclosures provide public access to the original photographs.”
“Virtually Staged”
Guide reviewed September 10, 2026. Links below include legislation, regulator guidance, and board or MLS materials. Their scope differs: a board rule is not statewide law, and a regulator homepage is not proof that no other rules exist. This guide does not verify every local MLS policy. Confirm the current requirements before publishing.
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