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Video: AI Photos BANNED - New Real Estate Law Requires Disclosures for 202621388

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Video: AI Photos BANNED - New Real Estate Law Requires Disclosures for 2026 | Video courtesy of Nathan Cool Photo YouTube Channel | 15 December 2025

Nathan Cool Video: AI Photos BANNED - New Real Estate Law Requires Disclosures for 2026


Hi All,

Starting January 1, 2026, a new law goes into effect that will determine how you can use AI-edited images for real estate listings. This new law will be enforced in California while other states are looking at similar laws to prevent property misrepresentation.

This goes beyond just MLS rules, this now makes violation a criminal offense. If you use Virtual Staging, Sky Swaps, object removal, or any AI-based photo editing, this video will help you navigate these new requirements, how you can safely provide these kinds of edits, and protect yourself from legal ramifications.


Source: Nathan Cool Photo YouTube Channel

Your thoughts?

Happy holidays,

Dan
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@DanSmigrod I commented on his youtube video... AI photos are not going to be banned. The title is clickbait.

I think the more reputable agents have already been denoting which images are digitally altered, either on the actual photo or in the MLS notes. So this shouldn't be a big shock for anyone.

tom
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@SparksMediaGroup We will wait to see how its enforced. I think they will have their hands full with this being used so widespread. I am currently looking for a new house and see it on almost every listing, so maybe good concept but to hard to enforce.
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@ron0987 in my local markets MLS really does a great job at calling out virtually staged/virtually rendered images. I have a story about fake fire i've told a few times, maybe i'll make a video about it soon and how it cost an agent $1,000.

tom
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My wife is a BHHS agent. Her office this week had a Zoom call focused on this. Actually, it simply reinforces the rules that already existed and stiffened the penalty. It's always been known that if there are ugly power poles behind the house, LEAVE THEM THERE. You can't change stuff that will MISREPRESENT the property for what it is. The other long-known issue was putting fire in fireplaces that don't actually work. Should be obvious - don't lie. Didn't we learn this in kindergarten?

I would never recommend misrepresenting anything, and especially now that you'll ALSO be required to provide the raw photo unretouched. Duh, who wants a photo to display a button that (essentially) screams I LIED!
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My question is because in the past I have had a few agents take the liberty to make a few AI adjustments. I don’t have to worry about anymore, and in few cases when I approached the agent they said it was a timeline issue. Who will be ultimately held responsible?
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@ron0987 as of today the agent is responsible for what they put on MLS.
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It is the agent who will be held responsible. Agents are licensed by their state Department of Real Estate (DRE, the California department) and this is the body that can fine them or, in worst case, pull their license. If pulled, their occupation as an agent or broker is terminated. It's like an attorney being de-barred or a doctor losing his/her license to practice.

Every agent pays an annual fee to their brokerage (Compass, Berkshire Hathaway, Coldwell Banker, etc) for E+O insurance (errors and omissions). If an agent is sued over something, the brokerage gets involved. No agent can conduct RE business without "hanging their license" (signing up) with a brokerage. When a house is bought or sold, the contract is not with the agent, but the brokerage.

I think you'll find fewer agents thinking about changing anything in photos going forward. The fines are significant, as they should be in an age of photo-realistic AI manipulation.
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