If you work in real estate, you have probably seen the headlines: California is putting a real law behind something that has mostly lived in MLS rules and ethics standards for years. Starting January 1, 2026, California Assembly Bill 723 adds Business and Professions Code section 10140.8, creating clear requirements for when listing photos are digitally altered using photo editing software or artificial intelligence.

Why it matters: California treats willful violations of the real estate licensing law as a misdemeanor, which is why people are calling this a criminal offense shift, not just a policy update.

And here is the part Florida agents need to understand: even if Florida has not passed the exact same statute, the direction of travel is obvious. Regulators are moving from vague “do not mislead” guidance to disclosure-based requirements that are easy to audit. California is the bait, but Florida should treat this as the warning shot.

What California AB 723 Actually Requires

1) If you use a digitally altered image, you must disclose it

Under section 10140.8, if a broker, salesperson, or someone acting on their behalf includes a digitally altered image in an advertisement or promotional material for the sale of real property, the ad must include a statement that the image has been altered.

2) You must also provide access to the original, unaltered image

The law requires a link, URL, or QR code to a publicly accessible location that includes and clearly identifies the original unaltered image. If the ad is on a website the licensee controls, they must include the unaltered images in the posting or provide a compliant link.

3) “Digitally altered” is defined broadly

The definition is not limited to deepfake style manipulation. It includes using editing software or AI to add, remove, or change elements such as furniture, fixtures, appliances, flooring, walls, paint color, hardscape, landscape, facade, floor plans, views through windows, street features, and neighboring properties.

4) Common photo corrections are generally not the target

Routine adjustments like lighting, straightening, cropping, exposure, and color correction that do not change what the property is are generally treated differently than edits that change the actual representation.

The “Criminal Offense” Angle in California, in Plain English

AB 723 itself is written as a disclosure rule. The reason it becomes a criminal risk is that it sits inside the California real estate licensing law, where willful violations can be prosecuted as a misdemeanor.

Practical takeaway: If you materially modify a listing image in California and you do not disclose it and provide the original, you are not just risking an MLS fine or an ethics complaint. You are stepping into licensing enforcement, and potentially criminal exposure if it is treated as a willful violation.

Why Florida Agents Should Care Right Now

Florida does not need a copy-paste version of AB 723 for Florida agents to face serious consequences from AI-edited photos.

Florida already prohibits misleading real estate advertising

Florida license law allows discipline where a licensee has advertised property or services in a manner that is fraudulent, false, deceptive, or misleading. Florida administrative rules also state that no real estate advertisement placed or caused to be placed by a licensee shall be fraudulent, false, deceptive, or misleading.

The ethics standard is also clear

The National Association of Realtors Code of Ethics, Article 2, tells Realtors to avoid misrepresentation or concealment of pertinent facts relating to the property or the transaction.

And the risk is not theoretical

Florida Realtors has warned that removing something like a utility pole from a photo can trigger claims of deceptive advertising. AI tools make that kind of edit faster, cheaper, and more common. That increases the odds of someone doing it without thinking through the legal risk.

The Real Risk Is Not “AI”

The risk is material change without disclosure. Most compliance problems are not about making photos prettier. They come from edits that change what a buyer believes they are buying.

Edits most likely to create risk in Florida

• Removing permanent or semi-permanent external features: power lines, utility poles, nearby structures, roadways, construction, neighboring buildings, fencing, seawalls, docks, canals.
• Altering views: water views, skyline views, tree lines, what is visible through windows.
• Removing defects or condition issues: cracks, stains, roof wear, water intrusion marks, damaged drywall, aging pool surfaces.
• Adding features that do not exist: firepits, outdoor kitchens, upgraded flooring, luxury appliances, expanded landscaping.
• Virtual staging that suggests scale that is not real: overstated room size, bed sizes, furniture that could not fit.

California’s statute lists many of these categories explicitly. Florida law does not need the same list to punish misleading advertising.

What Florida Real Estate Agents Should Do Now

Even if you never touch a California listing, the best move is to adopt a California style workflow as your internal standard. It is easy to explain, easy to document, and hard to argue with.

1) Create an image disclosure policy for your team

Write down a simple rule: If an edit changes what a buyer would think is physically present, we disclose it and we keep the original. Then train everyone: agents, assistants, photographers, and marketing vendors.

2) Keep originals, consistently

Create a folder structure per listing:

• Originals
• Edited for MLS
• Edited for social
• Virtually staged

If a complaint arises, being able to produce originals quickly is what separates a mistake from a mess.

3) Require your vendors to provide edit notes

If you outsource editing or virtual staging, require the vendor to deliver original files and a list of edits performed.

4) Use disclosure language consistently

Florida does not currently require a specific disclosure statement like California, but disclosures still reduce risk and show good faith.

Example disclosure for MLS remarks or photo captions:
This image has been digitally altered for marketing purposes. Buyer should review the property in person and verify all features and conditions.

Example disclosure for virtual staging:
This photo is virtually staged. Furnishings and decor are digitally added and not included in the sale.

Example disclosure for enhanced exteriors:
This image has been digitally enhanced. Landscaping, sky, and lighting effects may be adjusted.

5) Do not let AI tools overwrite reality

Set a bright line. Avoid removing external obstructions, altering views, deleting neighborhood elements, or fixing defects in photos. If you want to show potential, use clearly labeled concept renders, not images that imply “this is what it looks like.”

Special Note for Florida Waterfront Listings

Florida waterfront property is exactly where AI image misuse gets dangerous fast. Common flash points include seawall condition, dock and lift condition, shoreline and erosion, protected vegetation, neighbor proximity and sight lines, and canal width and access.

If an image edit makes any of that look different, it can change buyer expectations and create misrepresentation risk under Florida law and rules.

A Simple Compliance Checklist Florida Agents Can Adopt Today

1. Did we add, remove, or change a physical element in any photo? If yes, disclose and keep originals.
2. Did we change anything visible outside the property? If yes, disclose and keep originals.
3. Did we alter a view through windows? If yes, disclose and keep originals.
4. Is this virtual staging? If yes, label as virtually staged.
5. Can we produce the original unedited photo within 5 minutes? If no, fix your storage process.

Bottom Line for Florida Agents

California is making AI-edited listing photos a disclosure and documentation issue with criminal consequences for willful violations under its licensing law.

Florida has not passed the same statute, but Florida already prohibits false, deceptive, or misleading advertising, and that is the exact place AI photo misuse lands.

If you want the safest play for 2026, act like AB 723 is coming to Florida anyway: disclose material edits, label virtual staging, keep originals, control your vendors, and do not edit reality.

Not legal advice. For Florida specific guidance on advertising risk, disclosure language, and transaction protection strategies, consult qualified counsel.