California · Assembly Bill · 2025–2026 Regular Session
AB723
California AB 723 — Real Estate: Digitally Altered Images: Disclosure (Chapter 497, Statutes of 2025)

Status ● Enacted Effective Jan 1, 2026 Passage Likelihood N/A

WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE

How Is This Bill Enforced

Enforcement Authority
Enforced by the Real Estate Commissioner through the Department of Real Estate. A willful violation of the Real Estate Law is a crime. No private right of action is explicitly created by this bill.
Private Right of Action
No private right of action. Enforcement is exclusive to the designated authority.
Penalties
A willful violation of the Real Estate Law is a crime under existing law. The bill does not specify civil monetary penalties, damages, or attorney fees. Enforcement is through the Real Estate Commissioner's existing disciplinary authority and criminal penalties applicable to Real Estate Law violations.

What This Bill Requires

Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.

Statutory Text
Analysis & Obligations
Bus. & Prof. Code § 10140.8
Disclosure requirements for digitally altered real estate images
Deployer

(a)(1) 1 A real estate broker or salespersonReal estate broker or salespersonThe bill does not independently define this term; it relies on the existing Real Estate Law definitions. The obligations apply to "a real estate broker or salesperson, or person acting on their behalf."Bus. & Prof. Code § 10140.8(a)(1), or person acting on their behalf, who includes a digitally altered imageDigitally altered image"Digitally altered image" means an image, created by or at the direction of the real estate broker or salesperson, or person acting on their behalf, that has been altered through the use of photo editing software or artificial intelligence to add, remove, or change elements in the image, including, but not limited to, fixtures, furniture, appliances, flooring, walls, paint color, hardscape, landscape, facade, floor plans, and elements outside of, or visible from, the property, including, but not limited to, streetlights, utility poles, views through windows, and neighboring properties. "Digitally altered image" does not include an image where only lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure, or other common photo editing adjustments are made that do not change the representation of the real property.Bus. & Prof. Code § 10140.8(b) in an advertisement or other promotional material for the sale of real property shall include in the advertisement or promotional material a statement disclosing that the image has been altered and a link to a publicly accessible internet website, URL, or QR code that includes, and clearly identifies, the original, unaltered image. The statement shall be reasonably conspicuous and located on or adjacent to the image and shall include language indicating that the unaltered images can be accessed on the linked internet website, URL, or QR code.

(a)(2) 2 If an advertisement or promotional material described in paragraph (1) is posted on an internet website over which the real estate broker or salespersonReal estate broker or salespersonThe bill does not independently define this term; it relies on the existing Real Estate Law definitions. The obligations apply to "a real estate broker or salesperson, or person acting on their behalf."Bus. & Prof. Code § 10140.8(a)(1), or person acting on their behalf, has control, they shall include the unaltered version of the images from which the digitally altered imagesDigitally altered image"Digitally altered image" means an image, created by or at the direction of the real estate broker or salesperson, or person acting on their behalf, that has been altered through the use of photo editing software or artificial intelligence to add, remove, or change elements in the image, including, but not limited to, fixtures, furniture, appliances, flooring, walls, paint color, hardscape, landscape, facade, floor plans, and elements outside of, or visible from, the property, including, but not limited to, streetlights, utility poles, views through windows, and neighboring properties. "Digitally altered image" does not include an image where only lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure, or other common photo editing adjustments are made that do not change the representation of the real property.Bus. & Prof. Code § 10140.8(b) were created in the posting. A person subject to this paragraph may comply with this requirement by including a link to a publicly accessible internet website that includes, and clearly identifies, the original, unaltered image. If the real estate broker or salespersonReal estate broker or salespersonThe bill does not independently define this term; it relies on the existing Real Estate Law definitions. The obligations apply to "a real estate broker or salesperson, or person acting on their behalf."Bus. & Prof. Code § 10140.8(a)(1), or person acting on their behalf, complies with this requirement by including a link to the unaltered images, the statement required by paragraph (1) shall include language indicating the unaltered images can be accessed on the linked internet website, URL, or QR code.

(b)(1)–(2) For purposes of this section, "digitally altered imageDigitally altered image"Digitally altered image" means an image, created by or at the direction of the real estate broker or salesperson, or person acting on their behalf, that has been altered through the use of photo editing software or artificial intelligence to add, remove, or change elements in the image, including, but not limited to, fixtures, furniture, appliances, flooring, walls, paint color, hardscape, landscape, facade, floor plans, and elements outside of, or visible from, the property, including, but not limited to, streetlights, utility poles, views through windows, and neighboring properties. "Digitally altered image" does not include an image where only lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure, or other common photo editing adjustments are made that do not change the representation of the real property.Bus. & Prof. Code § 10140.8(b)" means an image, created by or at the direction of the real estate broker or salespersonReal estate broker or salespersonThe bill does not independently define this term; it relies on the existing Real Estate Law definitions. The obligations apply to "a real estate broker or salesperson, or person acting on their behalf."Bus. & Prof. Code § 10140.8(a)(1), or person acting on their behalf, that has been altered through the use of photo editing software or artificial intelligence to add, remove, or change elements in the image, including, but not limited to, fixtures, furniture, appliances, flooring, walls, paint color, hardscape, landscape, facade, floor plans, and elements outside of, or visible from, the property, including, but not limited to, streetlights, utility poles, views through windows, and neighboring properties. (2) "Digitally altered imageDigitally altered image"Digitally altered image" means an image, created by or at the direction of the real estate broker or salesperson, or person acting on their behalf, that has been altered through the use of photo editing software or artificial intelligence to add, remove, or change elements in the image, including, but not limited to, fixtures, furniture, appliances, flooring, walls, paint color, hardscape, landscape, facade, floor plans, and elements outside of, or visible from, the property, including, but not limited to, streetlights, utility poles, views through windows, and neighboring properties. "Digitally altered image" does not include an image where only lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure, or other common photo editing adjustments are made that do not change the representation of the real property.Bus. & Prof. Code § 10140.8(b)" does not include an image where only lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure, or other common photo editing adjustments are made that do not change the representation of the real property.

Section 10140.8 imposes two related disclosure obligations on real estate licensees who use digitally altered images — including AI-generated alterations — in property advertisements or promotional materials. Subsection (a)(1) requires a conspicuous on-image disclosure statement plus a link to the original unaltered image for all advertisements. Subsection (a)(2) adds a supplemental requirement for internet-posted materials: the unaltered image must be included directly in the posting or accessible via link. Subsection (b) defines "digitally altered image" broadly to cover AI and photo-editing alterations that add, remove, or change property elements, while carving out routine adjustments like lighting, cropping, and color correction.

The disclosure obligation is triggered by the act of including a digitally altered image in any advertisement or promotional material for the sale of real property. The covered entity is the real estate broker or salesperson, or a person acting on their behalf.

Compliance actions 2 items
1
A real estate broker or salespersonReal estate broker or salespersonThe bill does not independently define this term; it relies on the existing Real Estate Law definitions. The obligations apply to "a real estate broker or salesperson, or person acting on their behalf."Bus. & Prof. Code § 10140.8(a)(1), or person acting on their behalf, who includes a digitally altered imageDigitally altered image"Digitally altered image" means an image, created by or at the direction of the real estate broker or salesperson, or person acting on their behalf, that has been altered through the use of photo editing software or artificial intelligence to add, remove, or change elements in the image, including, but not limited to, fixtures, furniture, appliances, flooring, walls, paint color, hardscape, landscape, facade, floor plans, and elements outside of, or visible from, the property, including, but not limited to, streetlights, utility poles, views through windows, and neighboring properties. "Digitally altered image" does not include an image where only lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure, or other common photo editing adjustments are made that do not change the representation of the real property.Bus. & Prof. Code § 10140.8(b) in any advertisement or promotional material for the sale of real property must include a reasonably conspicuous disclosure statement on or adjacent to the image stating that the image has been altered. The disclosure must also include a link to a publicly accessible internet website, URL, or QR code where the original, unaltered image is clearly identified and available. The statement must include language indicating that the unaltered images can be accessed at the linked location.
T-02.1
2
When an advertisement or promotional material containing a digitally altered imageDigitally altered image"Digitally altered image" means an image, created by or at the direction of the real estate broker or salesperson, or person acting on their behalf, that has been altered through the use of photo editing software or artificial intelligence to add, remove, or change elements in the image, including, but not limited to, fixtures, furniture, appliances, flooring, walls, paint color, hardscape, landscape, facade, floor plans, and elements outside of, or visible from, the property, including, but not limited to, streetlights, utility poles, views through windows, and neighboring properties. "Digitally altered image" does not include an image where only lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure, or other common photo editing adjustments are made that do not change the representation of the real property.Bus. & Prof. Code § 10140.8(b) is posted on an internet website controlled by the real estate broker or salespersonReal estate broker or salespersonThe bill does not independently define this term; it relies on the existing Real Estate Law definitions. The obligations apply to "a real estate broker or salesperson, or person acting on their behalf."Bus. & Prof. Code § 10140.8(a)(1) (or person acting on their behalf), the unaltered version of each digitally altered imageDigitally altered image"Digitally altered image" means an image, created by or at the direction of the real estate broker or salesperson, or person acting on their behalf, that has been altered through the use of photo editing software or artificial intelligence to add, remove, or change elements in the image, including, but not limited to, fixtures, furniture, appliances, flooring, walls, paint color, hardscape, landscape, facade, floor plans, and elements outside of, or visible from, the property, including, but not limited to, streetlights, utility poles, views through windows, and neighboring properties. "Digitally altered image" does not include an image where only lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure, or other common photo editing adjustments are made that do not change the representation of the real property.Bus. & Prof. Code § 10140.8(b) must also be included in the posting. Compliance may be achieved by including a link to a publicly accessible internet website that includes and clearly identifies the original, unaltered image. If the link method is used, the disclosure statement required by subdivision (a)(1) must include language indicating the unaltered images can be accessed on the linked website, URL, or QR code.
T-02.1
SEC. 2
Reimbursement disclaimer

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

Section 2 is a standard California reimbursement disclaimer stating that no state reimbursement to local agencies is required because any costs arise solely from the creation of a new crime. This provision creates no compliance obligation.

Passage Likelihood

Enacted
Status Enacted

Legislative History

2025-02-14 Read first time. To print.
2025-02-15 From printer. May be heard in committee March 17.
2025-03-03 Referred to Com. on P. & C.P.
2025-04-02 From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 14. Noes 0.) (April 1).
2025-04-03 Read second time and amended.
2025-04-07 Re-referred to Com. on APPR.
2025-04-30 In committee: Set, first hearing. Referred to suspense file.
2025-05-23 From committee: Do pass. (Ayes 13. Noes 0.) (May 23).
2025-05-27 Read second time. Ordered to third reading.
2025-06-03 Read third time. Passed. Ordered to the Senate. (Ayes 66. Noes 2. Page 1978.)
2025-06-04 In Senate. Read first time. To Com. on RLS. for assignment.
2025-06-18 Referred to Coms. on B. P. & E.D. and JUD.
2025-07-02 From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. P. & E.D.
2025-07-07 From committee: Do pass and re-refer to Com. on JUD. (Ayes 8. Noes 3.) (July 7). Re-referred to Com. on JUD.
2025-07-16 From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 2.) (July 15). Re-referred to Com. on APPR.
2025-08-18 In committee: Referred to suspense file.
2025-08-29 From committee: Do pass. (Ayes 5. Noes 2.) (August 29).
2025-08-29 Read second time. Ordered to third reading.
2025-09-05 Read third time and amended. Ordered to second reading.
2025-09-08 Read second time. Ordered to third reading.
2025-09-09 Read third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 10. Page 2674.).
2025-09-09 In Assembly. Concurrence in Senate amendments pending.
2025-09-10 Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 64. Noes 2. Page 3226.).
2025-09-22 Enrolled and presented to the Governor at 3 p.m.
2025-10-10 Approved by the Governor.
2025-10-10 Chaptered by Secretary of State - Chapter 497, Statutes of 2025.

Entry Last Reviewed

2026-05-09
AI generated