Virtual staging disclosure: labels, MLS rules and state law

Buyers judge a home from its photos. A staged room that looks like real furniture can mislead if nobody says it was added digitally. The NAR Code of Ethics (2026 edition) asks REALTORS® to present a true picture in advertising and marketing under Article 12, and Standard of Practice 12-10 applies that duty to images, including content manipulated in a way that produces a deceptive or misleading result. NAR’s own guidance on when enhancing listing photos goes too far (August 17, 2026) also points to Article 2, which covers exaggerating, misrepresenting or concealing pertinent facts. We summarized these from NAR’s published pages, checked October 15, 2026; read the current text yourself.

Disclosure is often skipped in practice. A study by Coraly, reported by HousingWire on June 24, 2026 (checked October 15, 2026), found signs of manipulation in about 10.8% of roughly 40,000 primary listing photos on four portals, and more than 90% of those had no visible disclosure. This is a company’s study as reported by a news outlet, and Coraly sells in this space, so treat the figures as indicative.

California AB 723 (Chapter 497, Statutes of 2025) added Business and Professions Code §10140.8, effective January 1, 2026. From the official code text on the legislature’s site, checked October 15, 2026:

• A broker or salesperson, or anyone acting on their behalf, who uses a digitally altered image in an advertisement or other promotional material for the sale of real property must include a statement that the image has been altered.
• The advertisement must also include a link, URL or QR code to a publicly accessible website that includes, and clearly identifies, the original, unaltered image.
• The statement must be reasonably conspicuous, sit on or adjacent to the image, and say that the unaltered images can be seen at that link, URL or QR code.
• On a website the licensee or someone acting for them controls, the posting must include the unaltered images, or link to a public page that has them.
• “Digitally altered” means using photo editing software or AI to add, remove or change elements, including 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.
• Images with only lighting, sharpening, white balance, color correction, angle, straightening, cropping, exposure or similar common adjustments are excluded when those edits don’t change how the property is represented.

The section sets no penalty of its own. The bill’s Legislative Counsel’s digest notes that a willful violation of the Real Estate Law is a crime. Under the law’s general penalty section, §10185, a willful violation is a misdemeanor punishable by a fine of up to $10,000, up to six months in county jail, or both. Under §10177(d), the Real Estate Commissioner may also suspend or revoke the license of someone who willfully violates it. All three were checked October 15, 2026. How they apply to a given listing is a question for your broker or the California Department of Real Estate.

A New York bill introduced by Assemblymember Linda Rosenthal would require disclosure of digitally altered images in sale and lease advertisements, along with the unaltered image. As of October 15, 2026 it is proposed, not law, according to 6sqft’s reporting. We have not verified rules in other states, so check your state’s real estate commission and MLS.

Every MLS writes its own rules, and they change. These are the rulebooks and help pages we could read directly, checked October 15, 2026. They disagree on basics: SmartMLS and Canopy MLS want the disclosure on the photo itself, Stellar MLS bars words on photos and wants it in the photo description and remarks, and Bright MLS asks for it in the remarks.

• Label every altered image, in the way your MLS asks (on the image, in the caption or description, in remarks).
• Keep the unaltered original and show it where your MLS or state requires it.
• Change furniture and decor only. Leave walls, floors, windows, fixtures and the view as they are.
• Never hide damage, wear or defects, and never add or remove things outside the property.
• Disclose in the listing remarks if your MLS asks for it.

Sample label wording

• “Virtually staged. Furniture and decor are digitally added.”
• “Virtually staged. See the unaltered original photos at [link or QR code].”
• Remarks: “One or more photos in this listing are virtually staged.”

These are examples, not wording approved by any MLS. Use the phrasing your MLS specifies.

• Downloads carry a “Virtually staged” label by default. You can change its text or turn it off in Settings.
• Your original photo stays in your account, so you have it to upload or link.
• Requests to enlarge a room, hide damage or alter structure are declined; staging is designed to preserve walls, windows, floors and the view, so compare each result with the original before publishing.

In California the disclosure also has to point to the unaltered original, which the label alone does not do. We don’t claim that any image meets a particular MLS’s requirements. That check is yours. See how to virtually stage a home for the full workflow. This page is general information, not legal advice.

Is virtual staging legal?

Generally yes, when it is disclosed and does not misrepresent the property. California requires a disclosure and a link to the unaltered original by statute, and MLSs set their own labeling rules. Rules vary, so check your own MLS and state.

Do I have to show the original photo?

In California, Business and Professions Code §10140.8 requires a link, URL or QR code to a public page with the unaltered original, and a listing on your own website must include the originals or link to them. MLSs differ: CRMLS and Canopy MLS want the original right before or after the staged photo, while SmartMLS says staged photos don’t need one. Check your MLS’s rule.

Is a watermark enough to disclose virtual staging?

It depends on the MLS. SmartMLS requires a stamp or watermark on the photo, and Canopy MLS requires the disclosure on the image and says captions or remarks alone are not enough. Stellar MLS bars words on photos and asks for a photo-description label and a remarks statement instead, and Bright MLS asks for disclosure in the remarks. In California the statement must also point to the unaltered original. Follow your MLS’s exact wording and placement.

Can I use virtual staging to hide damage or change a view?

No. Staging should add furniture and decor only. Hiding damage, changing walls, floors or windows, or altering the view can mislead buyers and break MLS rules and the REALTOR® Code of Ethics.

Does WellStaged handle my MLS’s photo rules for me?

No. Rules differ by MLS, and following them stays with you. WellStaged adds a “Virtually staged” label to downloads by default and keeps your original in your account. You can change the label text or turn it off in Settings, for example if your MLS bars words on photos. Check your MLS for where the label goes and whether the original must appear next to it.