As technology continues to shape the real estate industry, transparency remains a top priority for regulators, consumers, and professionals alike. Beginning January 1, 2026, a new formal rule implemented by CRMLS will take effect in response to recent amendments to California Assembly Bill 723. This rule focuses on how digitally altered images are presented in real estate listings and aims to ensure clarity and trust for buyers reviewing online marketing materials.
While the update may sound significant at first glance, the reality is that many agents already follow these standards. The change primarily formalizes best practices that responsible professionals have used for years, especially as virtual staging and artificial intelligence tools become more common.
What the New Rule Requires
Under the new CRMLS rule, any listing that includes a digitally enhanced image must also include the original, unedited version of that same image. The two images should be displayed together so that viewers can easily compare them. In addition, the listing must clearly disclose that certain images have been digitally altered.
The purpose of this requirement is simple. Buyers should be able to distinguish between a property’s actual condition and any visual enhancements used for marketing purposes. This added transparency helps prevent confusion and builds confidence throughout the transaction process.
What Qualifies as a Digitally Enhanced Image
According to the rule, a digitally enhanced image is any photo that has been altered through photo editing software or artificial intelligence to add, remove, or change elements within the image. The most common examples include virtual staging, adding or removing furniture, changing flooring or wall finishes, or digitally inserting appliances or landscaping features that are not physically present.
These tools can be incredibly effective for showcasing a property’s potential, especially when a home is vacant or needs cosmetic updates. However, the key is making sure buyers understand what is real and what has been digitally modified.
What Does Not Require Disclosure
Not all photo edits fall under this rule. Minor aesthetic adjustments that are standard in professional photography do not require separate disclosure. This includes changes such as adjusting brightness or contrast, correcting color balance, sharpening an image, or minor cropping.
These types of edits do not materially alter the property and are generally considered acceptable enhancements that reflect how the space appears in person.
Penalties and Enforcement
At this time, there is no penalty for failing to disclose a digitally enhanced image. The CRMLS Rules Committee is scheduled to revisit the issue in the first quarter of 2026 to determine whether enforcement measures or penalties will be introduced in the future.
Even without formal penalties, agents and sellers should view this rule as an opportunity to align with best practices and reduce the risk of misunderstandings or disputes later in a transaction.
Why This Matters for Buyers and Sellers
For buyers, this rule provides greater confidence when evaluating listings online. With both original and enhanced images available, buyers can make more informed decisions before scheduling showings or submitting offers.
For sellers, proper disclosure helps set realistic expectations and reduces the chance of disappointment when buyers view the home in person. While enhanced images can help attract attention, honesty ultimately leads to smoother transactions and stronger outcomes.
Best Practices Moving Forward
If there is any uncertainty about whether an image qualifies as digitally enhanced, it is best to err on the side of caution. Including the original image alongside the edited version demonstrates professionalism and protects all parties involved.
Although the rule does not take effect until January 1, 2026, agents and sellers are encouraged to begin following these guidelines now. Early adoption allows for smoother transitions and ensures compliance well before enforcement discussions take place.
Navigating Changes With Confidence
Real estate regulations evolve alongside technology, and staying informed is essential in today’s market. At Boutique Realty, we believe that clear communication and ethical marketing are just as important as strong negotiation and local expertise. Whether you are preparing to list a home or evaluating properties as a buyer, having guidance from a knowledgeable professional makes all the difference.
If you have questions about listing requirements, digital marketing strategies, or how these changes may impact your next move, connect with Boutique Realty at 818 312 0831, email al***@**********la.com, or visit allensellsla.com for trusted real estate guidance across Los Angeles.