Compliance guide for real estate professionals
New York Department of State has issued guidance warning that digitally altered images in real estate listings may constitute deceptive advertising. NYCRR Title 19 Part 175.25 requires honest, non-misleading advertising by licensees.
License revocation or suspension possible under NYCRR Title 19. Civil penalties for deceptive advertising practices.
NYCRR Title 19, Part 175.25 requires that real estate advertising be honest and not misleading. The NY Department of State has specifically warned about AI-generated and digitally altered images in listings. Each staged image should be individually labeled with a watermark or embedded text stating 'Virtually Staged' or 'Digitally Altered.'
Images get reshared, screenshotted, and posted to social media. Your watermark must be embedded in the image file itself (not just added by your MLS) so disclosure travels with the image no matter where it appears.
Under NY advertising regulations, undisclosed staging could be treated as deceptive advertising. Maintain original, unedited photographs for every staged image. If the Department of State investigates a complaint, having originals readily available demonstrates you acted in good faith.
NYC co-op and condo boards sometimes have their own marketing guidelines. Some boards require specific disclosures or prohibit certain types of image modification. Check with the managing agent before marketing with virtual staging.
New York buyers, particularly in competitive markets like Manhattan and Brooklyn, often work in finance, law, and media—industries with heightened sensitivity to disclosure and misrepresentation. Professional, thorough disclosure enhances credibility with this demographic.
"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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