With the recent additions of CDAR MLS Rules 11.5.1 (Definition of Digitally Altered Images) and 11.5.2 (Digitally Altered Images) that went into effect on December 7, 2025, we created a guide on what you should know about these new rules, and what you need to do to stay compliant should you be using digitally altered and/or AI images for your listing photos.
California Assembly Bill 723 (CA AB 723) was passed this year and went into effect as of January 1, 2026. It is a state law amendment that declares a property listing featuring digitally altered/AI images must include the original, unaltered photos, along with a disclosure on which images are digitally altered/AI. To coincide with this law, CDAR updated its MLS Rules, adding in Rule 11.5.1 (Definition of Digitally Altered Images) and 11.5.2 (Digitally Altered Images).
For a full breakdown of the new rule language, click the link here.
Photos that are considered digitally altered/AI are any images that have been significantly altered from their original state. This can include adding or removing furniture, appliances, artificially rendering the interior or exterior of the home (such as changing the interior/exterior color of the home, or adding/removing any interior/exterior fixtures), or any significant alteration to the content of the image. Adjusting brightness or applying color correction would not apply in this instance.
Any images that have been digitally altered, created/altered through AI, or are virtually staged must be labeled as “Digitally Altered.” The original, unedited version of the image must also be uploaded and included next to the digitally altered/AI photo on the listing.
You can do this by adding a watermark to the photos in your listing. To edit your photos, you would need to click on the Photos link when editing your listing. When editing your photo, you will see an icon that looks like a sunburst (highlighted below).
By clicking on this icon, you will be able to add a watermark to any image. The watermark will appear as below:
Note that you will need to click the watermark icon in order for the “Digitally Altered” watermark to appear on any images that are digitally altered/AI renderings. There will be no automatic detection, and it will not default to that watermark automatically without being clicked.
A few key items for you to know about the digitally altered watermark:
Anyone who does not comply by the MLS Rules will be considered not in compliance and may be subject to violations and fines within.
