Is virtual staging legal?
Virtual staging is allowed where it is disclosed and does not mislead. We found no source that bans it, and none that allows it without conditions. The conditions come from three places:
- state law, where it exists (California is the one with a statute);
- your MLS rules, which differ in wording and placement;
- the REALTOR® Code, for NAR members.
We say "allowed where disclosed and not misleading". We do not say "legal everywhere" or "illegal".
How we read each source:
- Read from the source. We read the document's own text.
- Read in part. We saw only short exact fragments.
- Reported by others. A news item, a newsletter or a search extract. We call these "recommended" or "reported", never "required".
What counts as virtual staging
CRMLS, the large California MLS, defines a digitally altered image broadly. It includes images changed with digital tools or AI "to add, remove, replace, or modify visual design elements such as furniture, appliances or decor." Its FAQ confirms that AI tools count: "Yes, AI-altered images count as digitally altered images." Source: CRMLS Digitally Altered Images FAQ, updated February 13, 2026. Read from the source.
CRMLS's knowledge base also treats virtually removing furniture that will not convey at closing as an alteration. See the CRMLS AB 723 FAQ. We read that page in part and paraphrase it.
Canopy MLS in North Carolina defines virtual staging as using photo editing software or AI tools to create a photo or conceptual rendering. It allows adding furniture, mirrors, artwork and plants if the change is disclosed and "no structural changes are implied". Source: Canopy MLS article, last updated February 27, 2026. Read from the source.
California's AB 723 uses a wider net. Its definition of an altered image reaches any image changed with photo editing software or AI "to add, remove, or change elements", including furniture, fixtures, flooring, walls and paint color. Decluttering an occupied room and staging a vacant one both fall under "add, remove, or change". The text is reported by others, from the codified section on a commercial mirror. Read it on the legislature's site before you rely on it.
Do you have to disclose it?
By layer:
- California law. AB 723 took effect on January 1, 2026 (chaptered October 10, 2025). It asks a broker or salesperson, or a person acting on their behalf, who includes a digitally altered image in an ad for a sale to add a statement that the image has been altered. The statement must be "reasonably conspicuous and located on or adjacent to the image", with a link or QR code to the original. The definition reaches images made "by or at the direction of" the agent. Reported by others. Bill record: CalMatters Digital Democracy.
- Your MLS. CRMLS, Canopy, San Diego MLS and others require a disclosure. San Diego MLS states in its AB 723 FAQ that "Labeling alone is not sufficient." These are MLS rules, not state law.
- The REALTOR® Code. Article 12 says REALTORS® "shall present a true picture in their advertising, marketing, and other representations", and Standard of Practice 12-10 prohibits "otherwise misleading consumers, including use of misleading images." Source: Code of Ethics, effective January 1, 2026. Read from the source. The Code has no rule number for virtual staging.
- Federal. In our research no federal rule is written for AI listing photos. The general rule against deceptive advertising applies to any ad. We did not recheck this against a federal source this month.
Other MLSs set their own rules. NWMLS in Washington is reported to require that altered photos be "clearly labeled as 'virtually staged.'" We saw that only in a trade newsletter.
What the disclosure says and where it goes
No single phrase works everywhere, and the placement differs:
| Source | Wording | Placement |
|---|---|---|
| AB 723 (reported) | A statement that the image has been altered. No fixed phrase | On or adjacent to the image, with a link or QR code to the original |
| CRMLS (read from the source) | "Photo Modified", "Virtually Staged", "Digitally Altered," "AI Altered", or "some accurate substantially similar term" | In the text field for the altered photo in the add/edit module |
| Canopy (read from the source) | No fixed words for general listings | "Directly ON the image or within the virtual tour". Captions alone are not accepted |
| SmartMLS (reported) | A stamp or watermark noting the photo is virtually staged | On the photo. Its caption field is reported as not enough |
| NWMLS (reported) | "virtually staged" | Not confirmed in the rule text we saw |
SmartMLS sources: virtually staged photos and virtually staged and altered photos. Both pages blocked us, so we saw only search extracts.
The practical rule: find the page in your MLS rulebook on virtual staging or digitally altered images, copy its words and put them where it says. A short example for a description field, to adapt: "Virtually staged. Furniture shown is not included." That sentence is a trade column's suggestion (HousingWire, June 30, 2026), not a rule.
Show the original beside it
Several sources ask for the unstaged photo to sit next to the staged one:
- CRMLS: the original must be submitted and "displayed in the listing immediately before or after" the altered image. Read from the source.
- Canopy: "A nonstaged (original) image MUST be included immediately before or after the AI enhanced or virtually-staged photo(s) or be easily accessible alongside the virtual tour." Read from the source.
- AB 723: a link, QR code or the originals in the posting. Reported by others.
SmartMLS is reported to ask for a stamp on staged photos without asking for the original. Reported by others. Check your own rulebook.
Only you can place the original in your listing. A tool can keep it for you, but the MLS entry is yours to fill.
What staging can never change
Staging adds furniture and decor. It does not touch the home. CRMLS bars alterations to real property elements, including "flooring, walls, windows, structural elements, cabinetry, paint color, hardscape, landscape, façade, fixtures, or floor plans", and to "elements outside of, or visible from, the property", including "views through windows". CRMLS also says "AI-generated landscaping images are not permitted in the MLS".
Canopy states that using staging "to hide material defects is strictly prohibited."
The simple version: stage the furniture, keep everything else. Do not change structure, fixtures, flooring, landscaping or the view. Do not hide damage. If a buyer would find the room different on a viewing, the photo is wrong.
Staging in a video or tour
The statute and most MLS texts we read are written about images. Canopy names virtual tours: its rule says "A listing must not use altered photos, renderings, or virtual tours without disclosure," and wants the disclosure inside the tour. We do not say AB 723 covers video, and we do not say it does not.
If a tour includes staged rooms, label the staged scenes on screen, keep the original photos next to them, and say what the viewer is seeing. Walking through a staged room in a video is still a picture of furniture that is not there.
What Scenella does and what stays with you
What Scenella does, stated as facts:
- A staged photo or scene carries "Virtually staged". It does not carry "AI-enhanced" as well. One label per asset.
- Originals stay archived and downloadable. The Photos tab shows a before and after toggle.
- Staging adds furniture and decor to empty rooms. Structure is never altered, defects stay visible, the view from a window is not changed and no landscaping is added to exterior photos.
- The AI disclosure page lists which enhancements Scenella may use.
What stays with you:
- The "Virtually staged" badge is Scenella's label. It is not your MLS's wording, and we make no claim that it fits any MLS, state or portal rule.
- Put your MLS's required wording in the photo description field, and put the original next to the staged photo.
- In California advertising, add the statement and the link to the originals.