If you virtually stage, digitally edit or AI-generate images for your rental listing, a new California rule applies from January 1, 2027.
AB 2025 (Chapter 572) was signed on September 27, 2026. It adds Section 1940.11 to the Civil Code. The rule covers any person who uses a digitally altered image in an ad or other promotional material for a rental, not only real estate agents. An owner who lists a house in Santa Clara or Campbell on their own is covered.
Where the January 1 date comes from
The bill does not set its own start date. Under the California Constitution (article IV, section 8(c)), a statute enacted at a regular session goes into effect on January 1 following a 90-day period from its enactment. AB 2025 was enacted September 27, 2026, so it takes effect January 1, 2027.
What counts as a digitally altered image
The law covers two kinds of images.
- Edited photos. An existing image changed with photo editing software or AI to add, remove or change elements. The law's examples include fixtures, furniture, appliances, flooring, walls, paint color, hardscape, landscape, facade, floor plans, and things outside or visible from the property, such as streetlights, utility poles, views through windows and neighboring properties. Virtual staging that adds furniture to an empty room is an edited photo.
- Fully AI-generated images. An image created entirely with artificial intelligence software.
Basic edits are not covered. An image where only lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure or other common adjustments were made, without changing how the property is represented, is not a digitally altered image.
What your listing needs
The rules are not the same for edited photos and fully AI-generated images, so sort your images first.
Every altered image needs a label. The ad must include a disclosure that the image has been altered. The disclosure must be reasonably conspicuous and placed on or next to the image. This applies to edited photos and fully AI-generated images alike.
Edited photos also need the original. For an edited photo, the posting must include the unaltered version it was made from. Instead of posting it, you can include a link, URL or QR code to a publicly accessible website that includes and clearly identifies the original, unaltered image. If you use a link, URL or QR code, the disclosure must also say that the unaltered images can be accessed through it.
Fully AI-generated images need the label, not an original. The original-image requirement does not apply to an image, architectural rendering or artistic rendering that was not originally created with a capture device (Civil Code 1940.11(b)(2)(B)). The law borrows its definition of capture device from Business and Professions Code 22757.1: a device that can record photographs, audio or video, including cameras and phones with built-in cameras. A fully AI-generated image still needs the "altered" label next to it.
Other points to know
- If a licensed real estate broker or agent violates the rule, it counts as a violation of their licensing law.
- The new section does not change any existing law on false or misleading advertising.
- Virtual staging is still allowed. The law requires disclosure, not a ban.
Owner checklist before January 1, 2027
- Sort the images on each current or planned rental listing: unedited, basic edits only, edited (staged or otherwise changed), and fully AI-generated.
- Put a clear "altered" label on or next to every edited and fully AI-generated image.
- For each edited photo, post the original with it, or add a link, URL or QR code to a public page that shows and clearly identifies the original.
- If you use a link, URL or QR code, make the label say the original images can be found there.
- Keep the original, unedited photos from every shoot so they are ready to post.
- If a photographer, agent or listing service prepares your photos, ask which images were changed and how the labels and originals will be handled.
A second look before the new year
If you list your own rental in San Jose, Los Gatos or Saratoga and want a second look at your listing photos before January 1, contact Blake or request a free rental analysis.
This post is general information for owners, not legal advice.