Since January 1, 2026, a California real estate broker or salesperson who uses a digitally altered image in an ad for a property must say so. AB 723 added Section 10140.8 to the Business and Professions Code: the disclosure that the image has been altered must be reasonably conspicuous and sit on or adjacent to the image, together with a link to a publicly accessible website, URL or QR code where the original, unaltered image can be seen. Lighting, sharpening, white balance, color correction, angle, straightening, cropping and exposure do not count as alteration. Adding, removing or changing parts of the property, including virtual staging done with AI, does. On top of the law, CRMLS Rule 11.5.2 requires the unaltered original to appear immediately before or after the altered image in an MLS listing, and does not permit AI-generated landscaping in the MLS at all. This is general information, not legal advice; ask your broker or counsel about a specific listing.
TL;DR
- The law: Business and Professions Code 10140.8 (AB 723), in effect since 2026-01-01, applies to brokers, salespersons and people acting on their behalf who advertise a property for sale.
- What to do: a statement that the image has been altered, "reasonably conspicuous" and "on or adjacent to the image", plus a link, URL or QR code to the unaltered original. If the ad is on a website you control, the unaltered images must be there too, or linked.
- Not alteration: only lighting, sharpening, white balance, color correction, angle, straightening, cropping and exposure.
- CRMLS Rule 11.5.2 (MLS): label altered images in the photo description ("digitally altered", "virtually staged"), place the original immediately before or after, never change real parts of the property, no AI landscaping. CRMLS says violations bring a warning, then a $250 fine if not corrected in time.
- Video: the statute talks about images. Treat every generated frame of a listing video the same way: real rooms, label anything staged, link the originals.
What the statute says, part by part
The text of Section 10140.8 is short. We read it on a public mirror of the California codes because the Legislature's own site refused automated requests on the day we checked; the mirror links back to the official source, which is the version to rely on.
Who it covers. A real estate broker or salesperson, or a person acting on their behalf, who includes a digitally altered image in an advertisement or other promotional material for the sale of real property.
What they must do. Include a statement disclosing that the image has been altered. The statement must be reasonably conspicuous and located on or adjacent to the image. They must also include a link to a publicly accessible internet website, URL or QR code where the original, unaltered image is shown. If the material is posted on a website the broker or salesperson controls, the unaltered images (or a link to them) go there as well.
What counts as a digitally altered image. An image created by or for the broker or salesperson that has been changed with photo editing software or artificial intelligence to add, remove or change elements of the property. The CRMLS and San Diego MLS guidance list examples: virtual staging, adding or removing furniture, fixtures or appliances, altering landscaping, and modifying views or backgrounds.
What does not count. Edits limited to lighting, sharpening, white balance, color correction, angle, straightening, cropping and exposure, as long as they do not change how the property is represented.
Details we could not confirm from a primary source on the day we checked, such as the exact penalty wording, are left out of this page on purpose. Ask counsel before relying on any summary, including this one.
What CRMLS Rule 11.5.2 adds for MLS listings
CRMLS wrote a new Rule 11.5.2 to match AB 723 (its previous Rule 11.5.2 was renumbered 11.5.3). Its guidance, published 2025-12-18 and updated 2026-10-20, says:
- Label altered images in the photo description, with terms such as "digitally enhanced", "digitally altered" or "virtually staged". A watermark is not required.
- Placement: the original, unaltered version must appear "immediately before or after the digitally enhanced image."
- Hard limits: you cannot add, remove or modify any real part of the property, such as wall color, flooring, cabinets, wall dimensions or landscaping. AI-generated landscaping images are not permitted in the MLS, even if labelled.
- Minor edits: brightness, color correction, sharpening and lighting are not affected.
- Enforcement: a warning first, then a $250 fine if not corrected in a timely manner.
San Diego MLS publishes a similar FAQ: label the image, upload the original next to it, and add the original image URL. Its point that "labeling alone is not sufficient" is worth remembering: a "Virtually staged" tag without the original visible does not comply.
What this means for listing video
The statute and the MLS rules are written about images. A listing video is a sequence of images, and AI video tools generate every frame, so the cautious reading is to apply the same logic shot by shot:
- Rooms stay as they are. The video may move the camera through a real room; it may not change walls, floors, cabinets, windows, the view or the garden.
- Staging is labelled. If a shot shows furniture the property does not come with, put "Virtually staged" on screen during that shot, and keep the real empty-room photo reachable from the same ad.
- Originals are linked. Put the link or QR code to the unaltered photos in the caption or end card, and on your website next to the video.
- Landscaping is off limits for the MLS. Do not generate a greener lawn, a new hedge or a pool, labelled or not.
- Grade carefully. Color correction is allowed. A filter that turns grey floors warm oak is not color correction; it changes the floor.
Making a compliant clip on the Real estate preset
1. Start from real photos
Shoot each room level, from a corner, in natural light, with nothing added. These are your unaltered originals: keep them in one public folder or page so the link in your disclosure points somewhere stable.
2. Fill the slots
Open the Real estate preset in the clip maker. It is built for "slow walk-throughs in natural light" and asks "Which property are we filming?". Put three room photos in the Rooms slot, a frame of the property itself in its best real light in the Style slot, and leave the optional Person slot empty unless an agent who agreed to appear should be in shot. The defaults are 5 scenes, 30 seconds and 16:9; switch to 9:16 for Reels.
3. Edit the script for compliance
The clip maker drafts one line per scene from your idea. Delete any line that adds or changes something real: "freshly painted", "new hardwood floors", "lush garden", "ocean view". If you want a staged scene, decide it now, so you know which shot needs the on-screen label.
4. Render and audit
The render button shows its credit price before you press it. Check every frame against the originals: window count and position, floor colour, cabinet doors, what is outside the windows. Re-shoot any scene that drifted. A failed scene can be retried on its own, and failed generations are refunded automatically.
5. Add the disclosure in the Video Editor
Type the label as a text layer over the staged shots, and put the link or QR code to the originals on the end card and in the caption. Typed text is exact; text generated inside a frame is not.
Prompts that stay on the right side of the line
Prompt:
A slow walk from the entry into the empty living room from the reference photo, natural afternoon light from the existing windows, steady eye-level camera, walls, floor and windows exactly as in the photo, nothing added
Prompt:
A slow pan across the kitchen from the reference photo, same cabinets, same countertop, same appliances, soft daylight, the view through the window unchanged
Prompt:
The bedroom from the reference photo, virtually staged with a simple bed and one nightstand, the walls, floor, window and closet unchanged, slow push-in at eye level
The third prompt makes a staged shot: under AB 723 and CRMLS it needs a "Virtually staged" label and the empty original next to it.
Which model for which shot
Fixed prices per clip, in credits, on the 8frame board:
| Model on the board | Credits | Good for | The catch |
|---|---|---|---|
| Kling v3 Standard | 86 for 5 s with sound, 57 silent | A push-in from one real room photo | Needs a start image; 720p |
| Kling 2.5 Turbo Pro | 48 for 5 s | A move between two of your photos (first and last frame) | No sound; frames between are generated, so audit them |
| Hailuo H3 | 88 for 5 s at 2K | A wide 16:9 room shot | No sound setting on 8frame, though its files come with an audio track |
| Seedance 2.5 | 157 for 5 s at 720p | The model the clip maker calls, as a single shot | Tops out at 720p |
| Nano Banana 2 (image) | 11 per image at 1K | A staged still to label and pair with the original | It is an altered image; disclose it |
No video model on 8frame outputs 4K and there is no video upscaler. For staging stills, see AI image generators for real estate; for full tours, how to make a real estate video with AI and AI for real estate marketing.
Rather have the clips made for you?
If you list in California and would rather hand off the video, the 8frame team can make the walk-throughs for you: 10 clips in 5 business days for $490, with one round of changes, made in the same Real estate preset this guide uses, from your unaltered photos. Send your photos and a short brief on the done-for-you real estate clips page. To make them yourself instead, open the Real estate preset in the clip maker and follow the steps above.
FAQ
What is California AB 723?
A 2025 California law that added Business and Professions Code 10140.8. Since January 1, 2026, a broker or salesperson who advertises a property for sale with a digitally altered image must state that it was altered, on or adjacent to the image, and link to the original, unaltered image.
Does AB 723 apply to AI virtual staging?
Yes. An image changed with photo editing software or artificial intelligence to add, remove or change elements of the property is a digitally altered image. The CRMLS and San Diego MLS guidance name virtual staging as an example.
Which photo edits do not need a disclosure?
Edits limited to lighting, sharpening, white balance, color correction, angle, straightening, cropping and exposure, as long as they do not change how the property is represented.
Is a "Virtually staged" label enough?
Not on its own. The statute also requires a link, URL or QR code to the unaltered image, and CRMLS requires the original to appear immediately before or after the altered one in the listing. San Diego MLS puts it plainly: labeling alone is not sufficient.
Does AB 723 cover video?
The statute is written about images. A listing video made with AI is built from generated frames, so the cautious approach is to treat each altered shot as an altered image: label it on screen and link the originals. Ask your broker or counsel for a ruling on a specific ad.
Sources
- California Business and Professions Code Section 10140.8 (AB 723), text read on a public mirror of the official code because leginfo.legislature.ca.gov refused our request: california.public.law/codes/business_and_professions_code_section_10140.8, checked 2026-11-04
- CRMLS Knowledge Base, digitally altered images FAQs (Rule 11.5.2 guidance; published 2025-12-18, updated 2026-10-20; previous 11.5.2 renamed 11.5.3): kb.crmls.org/knowledgebase/digitally-altered-images-faqs, checked 2026-11-04
- CRMLS Knowledge Base, California's altered image law, CA AB 723 FAQs (warning, then a $250 fine): kb.crmls.org/knowledgebase/californias-altered-image-law-ca-ab-723-faqs, checked 2026-11-04
- San Diego MLS, AB 723 digitally altered images FAQ ("Labeling alone is not sufficient"; examples of alteration): sdmls.com/ab-723-digitally-altered-images-faq, checked 2026-11-04
- 8frame prices, presets, defaults and limits: the 8frame app, checked 2026-11-04
Try it without signing up: the 8frame canvas opens on a real board. The canvas is free and unlimited; generation is paid from $19/month.