No, agents aren't getting fined $250 per virtual staging photo — that's a different rule
Two different rules, one viral mix-up. Here's what AB 723 actually requires — and where the $250 number actually comes from.
A post circulating on X in early 2026 claimed that California real estate agents would be fined $250 per photo for any virtually staged image without a label. It spread fast — agents panicked, compliance vendors saw a spike in inquiries, and the correction spread slower than the claim. Here's what the two rules actually say.
What AB 723 actually requires
AB 723, which took effect January 1, 2026, requires any California real estate licensee who uses digitally altered photos — including virtual staging, sky replacements, or any image that adds, removes, or modifies a physical feature — to provide a conspicuous written disclosure on or adjacent to that image, and to make the original unaltered photo available to prospective buyers. The law does not set a per-photo dollar fine. Willful non-disclosure is a misdemeanor under California law. As of early 2026, CRMLS — the state's largest MLS — is enforcing compliance through correction notices, not fines.
Where the $250 figure actually comes from
The $250-per-photo penalty is a real rule — but it predates AB 723 by years and covers a completely different situation. A number of MLS systems charge roughly $250 for each photo improperly deleted from an active or sold listing. That rule exists to protect listing history and market transparency: removing photos after close obscures a property's condition record. The fine applies to deletion, not to staging disclosure. The viral post appears to have spliced the deletion penalty onto the new staging-disclosure law.
Two real rules. Two different violations. One very fast mix-up.
My read for clients: if you're a seller, your agent is required to label any virtually staged photo and keep the original available — that's been law since January 1. If you're an agent, the compliance path is straightforward: label every staged image conspicuously and retain the original. The $250 deletion penalty is real but unrelated to staging. If someone's still quoting you the viral version, point them to the AB 723 text and the CRMLS FAQ.