California AB 723 took effect January 1, 2026.
Here’s what your brokerage needs to do — and the fastest way to do it.
California Assembly Bill 723 amended the Business and Professions Code to require disclosure whenever real estate marketing images are digitally altered in ways that could affect a buyer’s understanding of the property.
In plain language: if your listing photo has been virtually staged, AI-enhanced, or had furniture digitally added or removed, you must disclose that fact — visibly, on the photo or in the listing description, in a way the average buyer will see.
The four practical requirements
- Visible disclosure on each altered photo. A “Virtually Staged” watermark or label that’s readable at typical listing-thumbnail size (most boards: 5% of image height minimum).
- Disclosure in the listing description. A statement at the top of the listing remarks identifying which photos have been digitally altered.
- Original-photo retention. Most California MLS boards require keeping the unaltered original for a period (typically 5 years) and producing it on request.
- Audit-ready record. Both the original and altered images, plus the date of alteration, must be retrievable on request.
What happens if you don’t comply
- MLS sanctions: boards can fine, suspend, or revoke listing privileges
- Brokerage liability: the brokerage is on the hook, not just the agent
- DRE exposure: the California Department of Real Estate has investigative authority over deceptive marketing
- Civil exposure: undisclosed material alterations can give buyers grounds for misrepresentation claims
If you have one agent who does five listings a year, you can probably manage by hand. Most brokerages don’t have that.
A 30-agent brokerage doing 20 listings per agent per year = 600 listings. That’s ~4,800 photos to label correctly, 600 disclosure statements to add to listing remarks, 600 originals to retain for 5 years and retrieve on demand, and 600 audit records of who staged what, when, with which tool.
Doing this manually with each agent using a different staging tool means inconsistent disclosures, missed labels, and originals scattered across personal Dropboxes. When a board audits, you’re either ready or you’re not.
1. Automatic disclosure on every staged photo
Whether you use SEAREI’s Core Staging (we stage the photo) or MLS Ready (your photographer or other tool stages, we wrap the compliance), every photo we touch gets the “Virtually Staged” watermark sized and positioned per the MLS board’s rule, the disclosure language pre-written for AB 723, and a public verification URL the buyer can scan from a QR code.
2. Original-photo retention with proof of retention
We keep the original unaltered image in immutable storage for the AB 723 retention period (5 years), accessible via a public URL that’s part of every certificate. When a board audits, you point them at the URL.
3. Brokerage-wide audit dashboard
Every listing across every agent. Every certificate. Every verification URL. Every disclosure label. One dashboard for the brokerage admin. Quarterly report in two clicks — hand to auditor, hand to counsel, hand to the board.
4. We track the rules so you don’t have to
When AB 723 was passed, when CRMLS updated their photo rules, when CARETS adopted new language — we update our certificate generator. Your existing listings keep their original certificate (they snapshot the rule at issue time), and new listings get the new language automatically.
For brokerages with 20+ agents
$29 per agent per month, billed annually, with a 1-month free trial for the first 50 California brokerages. About $0 today and $29/agent/month after the trial — most agents do enough listings that the math works at 5+ listings/agent/year.
For solo agents and smaller teams
$49 per listing for MLS Ready (you bring the staging) or $249 for an 8-photo bundle of Core Staging (we do the staging too). Compliance is included on both.
- Read the AB 723 statutory text
- Maintain a per-MLS-board rule database
- Watermark each photo manually
- Write disclosure language for each listing
- Keep originals organized for 5 years
- Build an audit-trail system
We do all of that. You upload photos and pick a style.
My MLS isn’t in California. Does AB 723 apply to me?
No — AB 723 is California-specific. But most major MLS boards have their own disclosure rules (NAR 2026 Code of Ethics also requires AI/altered-image disclosure). SEAREI handles per-board rules for the launch-six: CRMLS, CARETS, San Diego, NWMLS, Stellar, Bright. More coming.
We use a photographer who already adds a watermark. Do we still need SEAREI?
The watermark is one of four AB 723 requirements. The other three (in-listing disclosure language, original retention, audit trail) are usually missing in photographer workflows.
We’ve been using virtual staging for years. Do we need to retroactively disclose?
AB 723 applies prospectively (Jan 1, 2026 forward). Listings still active on or after Jan 1, 2026 should be brought into compliance — SEAREI’s MLS Ready Package can wrap your existing staged photos.
Is AB 723 enforced today, or just on paper?
It’s enforced. CA DRE has investigative authority and the MLS boards have started auditing. Per-listing risk is small; the bigger risk is brokerage-wide when an audit goes wide.
Does the SEAREI compliance certificate hold up legally?
It’s a tamper-evident PDF with a cryptographic hash, a public verification URL, and the issuing rule snapshotted in. Strong evidence of good-faith compliance. We’re not attorneys — pre-signing-large-contract, have your counsel review a sample certificate.
Stop reading the law. Start certifying your listings.
If you’re a California brokerage with 20+ agents, we’ll set up a 1-month free trial and walk you through your first batch of listings.
This page summarizes the practical requirements of California AB 723 for real estate brokerages. It is not legal advice. SEAREI compiles MLS disclosure rules from each board’s published guidance and aligns the certificate it issues with those rules. Always verify the current rules with your local MLS and your own counsel before relying on any disclosure for a specific listing. More on AB 723 compliance.