A new law, Assembly Bill 723 (AB 723),  will soon change how real estate professionals advertise properties using digitally altered images. This bill, which adds Section 10140.8 to the Business and Professions Code, was a key focus for C.A.R. (Best Practices Here)

From the start, the California Association of Realtors (CAR) was deeply engaged on this issue. CAR opposed the initial bill, arguing that it was duplicative of existing false advertising laws and created "unnecessary liability and risks unintended consequences" for members.

CAR's advocacy focused on two key problem areas:

1. Vague Definitions: The initial language risked penalizing agents for "routine, good-faith edits" like decluttering or minor corrections, which are standard industry practices. CAR pushed for a clear definition that targeted only material changes.

2. Third-Party Liability: The bill could have made licensees liable for images scraped by or posted on third-party websites that they do not control.

CAR's voice was partially agreed with. The final version of the bill includes amendments that "attempt to address opposition concerns". Specifically, the law now clearly exempts common photo-editing techniques and limits an agent's compliance burden to websites they directly control.

Here is a clear breakdown of the new law as passed best practices for compliance.

   

The Heart of the Law: What's "Altered" and What Isn't?

This law is not intended to penalize professional photography. Its goal is to stop deceptive alterations that mislead consumers about the physical reality of a property. The law itself, in BPC § 10140.8, creates a, two-part definition:

1. What IS an "Altered Image" (Disclosure Required)

A disclosure is required if an image is "altered through the use of photo editing software or artificial intelligence to add, remove, or change elements" of the real property.

This includes, but is not limited to, changes to:

• Furniture, appliances, flooring, and walls

• Fixtures, paint color, hardscape, and landscape

• Elements "outside of, or visible from, the property," such as streetlights, utility poles, views through windows, and neighboring properties

• This also includes "virtual staging" where furniture or other physical attributes are digitally added to a room.

2. What IS NOT an "Altered Image" (NO Disclosure Needed)

This is the key clarification CAR successfully lobbied for. You do not need a disclosure for "common photo editing adjustments" that "do not change the condition" or "representation" of the real property.

The law explicitly exempts:

• Lighting

• Sharpening

• White balance

• Color correction

• Angle

• Straightening

• Cropping

• Exposure

The Rule: You can make the photo look better (brighter, crisper, more true-to-life). You cannot make the property look different (new grass, no power lines, different-colored cabinets).

Disclosure Duties: How to Comply

If you use an image that meets the definition of "digitally altered," you must do the following:

1. For ALL Advertising (Print or Online): You must include a "reasonably conspicuous statement" on or next to the image disclosing that it has been altered.

2. For PRINT Advertising (Flyers, Mailers, etc.): In addition to the disclosure statement, you must also provide:

• "a link to a publicly accessible internet website, URL, or QR code that includes, and clearly identifies, the original, unaltered image".

3. For ONLINE Advertising (MLS, Website, etc.): The law provides a more direct compliance path for websites "over which the real estate broker or salesperson... has control". You have two options:

• Option A: Follow the print rule (disclosure statement + link/QR code).

• Option B: Simply "include the unaltered version of the picture" in the posting itself.

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Best Practices for Easy Compliance (Check with your Broker for Broker Specific Guidance)  CRMLS is currently evaluating this new law.

This law goes into effect on January 1st, 2026

Here is a straightforward action plan (Check with your Broker, for Broker specific rules:)

• For Print Ads:

  • Create a single, public webpage or photo gallery (like on a brokerage site or a cloud service) with all the original photos for that listing.

  • Generate a single QR code that links to that gallery.

  • On any altered photo in a flyer, add the text: "Image has been digitally altered. Scan QR code for original photos."

• For Online Ads (The Easiest Way):

  • When uploading to the MLS or a website that yor firm has control over, simply upload both versions of the photo.

  • Use the photo caption to label them clearly. This satisfies all requirements.

  • Altered Photo Caption: "Virtually Staged" or "Digitally Altered"

  • Original Photo Caption: "Original Photo - Unaltered"

By posting both labeled photos in the same gallery, you are being "reasonably conspicuous" and are "includ[ing] the unaltered version", placing you in full compliance.

Did you know?  PSAR MLS subscribers receive 30 FREE photo edits per month with REimagineHome.  Communicate your vision and bring more value to your listing. Watch a quick video overview, or get started with this helpful guide.

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Why this was pushed for: Trust and Transparency

The Consumer Federation of California pushed for this law to protect consumers from being "misled" and to give them a "true picture" of the property.

They said "Today, with the advancement of technology these tricks are easier than ever. But consumers are far too often misled by such images, only to waste their valuable time and effort when they actually see the property in person. To many consumers this feels like a bait and switch tactic, and we would argue that in some cases this is an unfair business practice."

Find C.A.R. information regarding new laws for 2026 here.

Here are the topic headings listed on the “2026 New Laws” chart by California Association of REALTORS®. You can view full descriptions and links here: 

• Advertising: Digitally-Altered Images

• Closed-loop payment system: Broker-provided form of payment accepted by vendor or referral source

• Data-broker: Broker prohibition on selling consumer personal information

• Energy: Building decarbonization: Prepaid charge disclosure

• Energy: Solar: Fire-resistant building materials; residential roofing permits

• Fire safety: Detached accessory dwelling units: Home hardening & defensible space requirement

• Housing element: Back-of-the-bill sale of certain homes built after wildfires — contractor disclosures and licensing

• Liquefied petroleum gas (LPG): Ventura County ordinance: Required LPG leak-event inspector

• Manufactured housing: Factory-built home network connection disclosure

• Nudity: Sexually-explicit or pornographic images on rental listings prohibited

• Privacy: Tenant property owner access agreements: Keys/pads access disclosure; use of biometric or facial recognition prohibited

• Private works construction: Claim resolution process for contracts with owner by contractor/subcontractor

• Real property transactions: County of Los Angeles – Wildfires: Unsolicited offers of purchase following disaster-declared homes

• Real property transactions: Preapproved plans for single-family and multifamily housing — local agency program

• Real-estate brokerage: Broker online advertising: Language preference for consumers; certain disclosures

• Renters: Rent caps and anti-demolition protections for specified units in transit-oriented and housing-forward jurisdictions

• Tax credits: Fire Safe Home Tax Credits Act (for home-hardening & vegetation management)

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Disclaimer: This blog post provides general information about AB 723 and is not intended as legal advice. For specific legal guidance regarding your obligations under Business and Professions Code Section 10140.8, please consult with your brokerage's legal counsel.

The Issue

Homeowners' insurance costs in California are climbing. In San Diego, many buyers are seeing double-digit renewal increases. For first-time buyers, these added costs can derail closings or, at a minimum, strain budgets. The impact is particularly acute for local education employees, whose salaries often lag the region’s cost of living.

FAQ at the bottom of this page.

A grant application link will
be available on November 1st

The Solution

The Education Employee Insurance Grant provides up to $2,500 per eligible first-time homebuyer employed as an education employee in San Diego County. Funds offset homeowners' insurance during the first two years of ownership, reducing a key barrier to closing and early retention.

Why This Matters to REALTORS®

• A reason to initiate new conversations within the education community
• Addresses a real affordability hurdle that stalls transactions
• Highlights the insurance crisis in California
• An opportunity to build long-term loyalty by supporting clients beyond closing
• Demonstrates REALTOR® leadership in mitigating a pain point for local homebuyers
  
     

How REALTORS® and Education Employees Participate

• Who applies: California REALTOR® submits on the buyer’s behalf.  Only transactions with a California REALTOR® are eligible. 
• Who Benefits: Education Employees include K–12 public school teachers, school administrators, classified employees, and staff of public charter, district, or county schools. 
• When: Applications accepted for homes that closed on or after November 1st on November 1, 2025 – October 31, 2026, or until funds are fully dispersed
• What’s needed: Closing statement, proof of education-employee employment, insurance declarations, and a first-time homebuyer affidavit.
• Process: Submit the complete package to grants@psar.org. PSAR reviews within 10 business days and notifies the REALTOR® & Buyer of the decision. Checks will be mailed to the buyer's address as listed on the application.
• REALTORS® are limited to two approved grants.

Helping education employees into homeownership strengthens ties with schools, families, and neighborhoods. This grant gives REALTORS® a clear, service-driven way to remove a rising cost barrier and deepen community connections.

 

A portion of this program is funded by the C.A.R. Housing Affordability Fund.  To learn more about this fund,   or to donate, follow this link.  100% of your donation goes directly into solving the housing crisis in California. REALTORS are also encouraged to contribute during dues billing.

More Information

REALTORS® For questions, visit www.psar.org/grants or email grants@psar.org.
Media inquiries: ceo@psar.org (copy support@psar.org)

Buyers, please ask your REALTOR®

 

The Paragon Connect app is now available for all CRMLS users.

Here’s a quick guide to help you get started. 
First, download the Paragon Connect app via the App Store or Google Play.

 

From there, you will be prompted to select your organization. Select California Regional MLS, then click the Get Started button. You’ll then be redirected to the REcore login page, where you can enter your MLS credentials. Click Login to continue.

The Home Page
Once you’ve signed in, you’ll have access to Paragon Connect’s full capabilities and features. From the home page, you gain immediate access to the Power Search. This enables quick and easy searching, as well as a summary of any buyer activity.

To access all other Paragon Connect features, click on the hamburger menu in the top left corner to open the quick menu.

From there, you’ll see all the same features available on the desktop version of Paragon Connect. If applicable, click Paragon Professional to open the full Paragon Professional site in your mobile browser.

Here is an intro to the Paragon Connect App

Other new features in Paragon Connect...

Customized Search Criteria with RUG (Room, Unit, Green) Fields

You can now leverage the new RUG (Room, Unit, Green) fields in Paragon Connect to refine your property searches by room features, unit types, and green attributes. To activate these search options, navigate to Systems Search and select the gear icon. On the Customize Fields page, scroll to locate and enable the toggles for Room, Unit, and Green Search categories. Be sure to click Save in the top-right corner to apply your changes.

 

Listing Tools Widgets

Add the new Listing Tools widget to your Paragon Connect Inventory Dashboard to quickly access third-party applications. Start by clicking the Customize Dashboard button, then select Add Widget. On the next page, click the Add Widget button again and save your changes to see it on your dashboard.

 

 

Read Paragon's Knowledgebase article for a full list of recent updates

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CRMLS offers a variety of resources to educate you on our products and services. Click above to visit the CRMLS training center.

If you need MLS support, please click above or call (800) 925-1525

Your listing data is safe, clean, and accurate. Click above to chat live with a CRMLS Compliance representative.

 

Read Paragon's Knowledgebase article for a full list of updates.

The San Diego County Local Area Disclosures (LADs) are a key resource in every transaction. They help protect REALTORS®, buyers, and sellers by flagging local conditions that could affect property value or livability. The 2025 update introduces significant changes that every real estate professional should understand.

Here are the biggest revisions you’ll notice compared to the older version.

Expanded County-Wide Issues

The 2025 LADs go further in outlining risks and obligations across San Diego County. New topics include:

• Zoning changes and community plan amendments – Highlights how general plans, rezonings, and voter initiatives can reshape land use around a property.

• Insurance considerations – Warns about California’s shifting homeowner’s insurance market and the need for buyers to research availability and costs.

• Private septic systems – Clarifies risks, maintenance obligations, and inspection needs for rural properties not connected to sewer systems.

• Cell towers and coverage gaps – Adds disclosures on hidden or disguised towers and their potential impact.

• Accessory Dwelling Units (ADUs) – Explains how ADUs on a property or neighboring lots may affect density, views, and parking.

• Unpermitted work – Calls out the risks of additions or modifications made without permits.

• Quarry operations – Stronger language on noise, blasting, and environmental impacts from long-term quarry projects.

Stronger Environmental Disclosures

Beyond earthquakes and flooding, the 2025 version now addresses:

• Wildfire hazard zones and defensible space – Buyers must be aware of vegetation clearance requirements and the impact on insurance.

• Tourist activity and short-term rentals – Adds detail about how Airbnb, VRBO, and other rentals affect neighborhoods.

• De Anza Natural Project – A new disclosure on Mission Bay redevelopment balancing recreation with habitat restoration.

• Battery storage facilities – Notes expansion of SDG&E’s energy storage systems and safety concerns.

Regional Updates That Matter

The regional sections have been modernized with new details:

• Central San Diego – Adds the Rose Canyon Fault Zone and new “City of Villages” mobility and land-use initiatives.

• South County – Expands coverage of border-related environmental concerns and emphasizes cross-border pollution issues.

• North and Inland – Adds disclosure on outdoor lighting ordinances in dark-sky communities like Julian and Borrego Springs.

• Coastal areas – Expands detail on Coastal Commission oversight, sea-level rise, and Coronado’s unique mix of military activity, zoning restrictions, and tourism.

Why This Matters for REALTORS®

These changes make the 2025 LADs more comprehensive, more protective, and more relevant to today’s market realities. Using the updated disclosures:

• Shields REALTORS® from liability by giving clients stronger warnings.

• Helps buyers make fully informed decisions.

• Improves trust in transactions by setting clear expectations.

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Bottom Line: The 2025 San Diego County LADs are not just an update—they’re a major improvement. REALTORS® should use the new version in every transaction and highlight these changes with clients to reinforce professionalism and compliance.

The California Department of Real Estate (DRE) has released its Summer 2025 Bulletin, and it’s packed with updates that every REALTOR® should see firsthand. If you think you can skip it, here are five reasons why opening the Bulletin is worth your time.

1. Mentorship Opportunities That Build Careers

The Bulletin highlights how mentorship is changing the way new agents enter the business. Want to know how a Sacramento mentorship program helps students close their first deal within months? The details are in the Bulletin.

2. Compliance Citations You Can’t Afford to Ignore

Minor mistakes—like a missing license disclosure or failing to report an address change—can now lead to fines of up to $2,500. The Bulletin explains exactly what triggers a citation and how to avoid one.

3. Trust Fund Account Rules Clarified

Who can sign on a trust account? Can property owners be added? The Bulletin clears up common misunderstandings that could expose brokers to liability.

4. Mortgage Loan Reporting Deadlines

If you handle mortgage loans, the DRE has new reminders on how and when to file your Business Activity Report. The Bulletin also explains how to troubleshoot filing issues.

5. A New Voice in Enforcement

Meet Shannan West, the new Assistant Commissioner for Enforcement. She lays out her vision for compliance and what REALTORS® can expect moving forward.

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Why You Should Read the Full Bulletin

This blog only scratches the surface. The full Summer 2025 DRE Bulletin includes compliance guidance, reminders, and updates directly from the Commissioner’s desk. Reading it now could help you:

• Avoid costly fines and violations

• Protect your license and your business

• Stay ahead of industry changes that affect REALTORS® every day

Read the full Summer 2025 DRE Bulletin here.

Don’t wait until a citation or compliance issue forces you to catch up. Stay informed, stay compliant, and stay ahead by reading the Bulletin today.

TODAY: A Powerful New Productivity Tool for All CRMLS Agents (FREE for Subscribers!)

By popular demand, Rayse, the leading app for tracking all the value you bring to your clients’ real estate journeys, is now available for all CRMLS users to use at no additional cost.

Providing your clients with a comprehensive overview of everything you do for them, big or small, is an effective way to communicate the diverse value you deliver. From the initial meeting all the way through close, every action taken is logged in real time, Rayse generates agendas, timelines, and records to demystify the representation process, driving a new, more transparent level of client relations.

And that’s just the tip of the Rayse iceberg!  It also has tools for creating presentations, collaboration, and more.

Access Rayse via your REcore dashboard.

How to access Rayse:

* Free for PSAR subscribers of CRMLS

The California Department of Real Estate (DRE) recently released a Consumer Alert outlining the most common enforcement violations and how to prevent them. These reminders are critical for REALTORS® to protect their clients, their businesses, and their licenses.

The DRE identified six key areas where violations most often occur:

• Trust Fund Handling & Record Keeping – Commingling funds or failing to reconcile accounts can lead to serious penalties.
• Failure to Supervise – Brokers must ensure proper oversight of all licensed and unlicensed activities.
• Unlicensed Activity – Only properly credentialed individuals may perform licensed real estate activities.
• Misrepresentation – Failing to disclose or providing inaccurate information puts both consumers and licenses at risk.
• Criminal Convictions – Licensees must report certain convictions or disciplinary actions within 30 days.
• Advertising & Team Names – Ads must include proper disclosures, license numbers, and broker association.

What this means for REALTORS®:
Maintaining compliance requires diligence in record-keeping, transparency in communications, strong supervision practices, and careful attention to advertising rules.

PSAR encourages all members to read the full DRE Consumer Alert to stay current and avoid costly mistakes.

Read the full alert here: DRE Consumer Alert – August 26, 2025

Michelle Hickin has spent years pouring time and energy into causes that make a real impact.

Her commitment to giving back is rooted in personal experience - after her family received support during a difficult time, she made it a priority to pay it forward and teach her son the same. Every role she takes on reflects her belief in building a stronger, more connected community.

For over eight years, she’s supported the Princess Project, a grassroots non-profit that collects and distributes prom dresses to high school students. She has also hosted dress drives, volunteered at giveaways, and supported the Teen Ambassador Program, which builds leadership skills and self-confidence in local teens.

She and her son, Brayden, also volunteer with Paws 4 Thought, a local dog rescue that operates entirely through in-home fosters. For the past two years, they’ve helped at adoption events across the county - setting up pens, walking and socializing dogs, and cleaning up - while aiding rescues from Tijuana, China, and local shelters.

Through the Volunteer Collective at Mission Federal Credit Union, she has taken part in food packing at the Food Bank, beach cleanups, relief work for flood victims, the Food 4Kids Backpack Program, and projects with the San Diego Rescue Mission as well as the aforementioned  Princess Project.

Her leadership skills are also on display in professional circles. With the Women’s Council of Realtors, she has served for 13 years as a Committee Chair and Membership Director, promoting women in business and leadership positions. She also volunteers with the California Escrow Association. participating on the education and membership committees, recruiting members and sharing her industry knowledge.

       

Learn more about the PSAR Good Neighbor Award and submit nominations HERE

Delivering real value to clients is more important than ever. RealReports is an AI-powered property insights tool that helps agents save time, reduce risk, and present themselves as knowledgeable professionals. Now available at no cost through your CRMLS REcore dashboard, this tool gives agents a competitive edge - starting today.

Often called the “Carfax for homes,” RealReports pulls together zoning, permits, hazards, climate risks, school data, and more into one easy-to-share report. It also supports document analysis, lead generation, and even answers client questions using a built-in AI co-pilot named Aiden.

Why Use RealReports?

• Fast, accurate property insights in seconds

• Stronger buyer and seller presentations

• Smarter offer strategies with less manual research

• Branded, client-friendly reports that set you apart

• Built-in lead capture and follow-up tools

“When your client can ask an AI about wildfire risk or school ratings while standing in the kitchen at a showing—and it’s your branding on the screen—that creates trust.”
— RealReports User

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For Buyer Agents: Save Time and Build Trust

Before Showings
Skip wasted tours. Run a Snapshot or Buyer Report to flag flood zones, permit issues, or climate risks before you leave the office.

During Tours
Access more property data than the MLS provides—plus tools to guide your client’s decision-making in real time.

When Writing Offers
Eliminate hours of due diligence. RealReports puts ownership history, zoning info, insurance flags, and inspection risk indicators in one place—supporting stronger offers and fewer surprises.

Relocation Clients
Use RealReports to introduce out-of-area buyers to neighborhoods with interactive data on schools, crime, and local trends.

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For Listing Agents: Win More Listings and Engage More Buyers

Listing Presentations
Bring a Seller Report to your first appointment. Show potential clients that you use premium tools and deliver maximum exposure.

Marketing & Open Houses
Use QR codes from the Seller Report on signs, flyers, or social media. Let buyers explore details via AI—and capture lead data automatically.

Client Retention
Stay in touch with past clients. Send a fresh report every year to show how their property value or local risks may have changed.

Lead Farming
Use Snapshot Reports to re-engage CRM leads with personalized info. Every view is tracked. Every question they ask Aiden is saved.

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Powered by Real Data, Backed by PSAR

This tool is made available through Pacific Southwest Association of REALTORS® (PSAR) at no cost to members. It reflects PSAR’s commitment to helping agents grow their business, improve client service, and stay ahead in a changing industry.

“RealReports empowers agents with fast, reliable property insights that help them stand out in today’s market. PSAR added this tool to give members an edge with accurate data and AI-powered support.”
— Rich D’Ascoli, CEO, PSAR

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How to Get Started

1. Log in to your PSAR/CRMLS Dashboard (REcenterhub)

2. Click the red “+” icon and add RealReports (or follow this 20 sec. video) 

3. Find RealReports tile and pull your first report in seconds

📺 Watch a Quick Demo of RealReports:
https://www.youtube.com/watch?v=hEVJ1tuX0Nw

🎓 Full Tutorial Hub:
https://realreports.notion.site/RealReports-Education-Hub-c80efead519340a188873a58e3a6b0f0

 

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This tool helps you work smarter, build trust faster, and show your value clearly. Use it before showings, at open houses, in buyer consults, or as part of your listing pitch. The more you use it, the more clients will see the difference.

Need help? PSAR staff can walk you through setup or usage—reach out anytime.

The California Department of Real Estate (DRE) and the Department of Financial Protection & Innovation (DFPI) just issued a joint bulletin warning real estate brokers and escrow companies about improper commission disbursements.

What’s the Issue?
Some brokers are asking escrow companies to pay their personal or business expenses directly out of their commissions. These payments have included credit card bills, tuition, rent, utilities, and even entertainment costs.

Why It’s a Problem
Escrow companies are only allowed to follow written instructions from the principals to the transaction—the buyer and seller. Brokers are not principals in an escrow. Sending commission funds to third parties (even with a CDA) may violate the Real Estate Law, Escrow Law, and federal RESPA rules.

What Brokers Need to Know

• Commission payments should go directly to the broker.

• Brokers must not direct payments to unlicensed individuals or businesses.

• Escrow agents cannot change instructions or include blanks in signed escrow documents.

• Broker-controlled escrows must follow the same rules—trust funds must only be disbursed as directed by the party who deposited them.

What Happens if the Rules Are Broken?
The DRE and DFPI say they will investigate violations and referral fee arrangements that may be unlawful.

To stay compliant and protect your license, ensure that all commission payments follow written instructions from the principals and go to you, not outside vendors or individuals.

Read the Full Bulletin Here