Assembly members advance AB 723 to mandate disclosure of virtually staged real estate images

The California Senate Business, Professions and Economic Development Committee convened on July 7, 2025, to discuss critical legislation aimed at enhancing transparency in real estate practices. A key focus was Assembly Bill 723, which seeks to mandate disclosures for virtually staged home listings, a growing concern in the real estate market.

Assemblywoman Pelrin presented the bill, highlighting the challenges consumers face when encountering digitally altered images of properties. She shared a personal anecdote about a misleading home listing that featured a virtually staged kitchen, emphasizing the need for clear disclosures to prevent consumer deception. "This bill is our beacon of hope," she stated, advocating for a common-sense approach to safeguard homebuyers.

The bill has garnered bipartisan support, with committee members acknowledging the importance of protecting consumers from misleading advertising. Senator Archuleta, a real estate broker, reinforced the necessity of maintaining high ethical standards in the industry, stating, "Our fiduciary responsibility has always been to our clients."

However, the California Association of Realtors expressed concerns, arguing that existing laws already prohibit misleading advertising. They suggested that further education for real estate agents might be a more effective solution than new regulations. Despite these objections, the committee moved forward with the bill, passing it with a unanimous vote of 7-0.

As the committee continues to address issues of transparency and accountability in real estate, the implications of AB 723 could reshape how properties are marketed in California, ensuring that consumers are better informed before making significant financial decisions. The bill now heads to the judiciary for further consideration, with advocates hopeful for its eventual passage into law.