Yes. New York has no rule that names virtual staging, but the Department of State issued a trend alert in November 2025 saying AI-generated and altered listing images can be misleading advertising under Real Property Law § 441-c and the rule that every advertisement must carry an honest and accurate description of the property, with fines up to $2,000 and licence discipline.
A bill introduced in March 2026, S9584, would require a clear and conspicuous disclosure on any materially altered digital representation and that digitally added furnishings be disclosed. It is not law as of September 2, 2026.
Regulator: New York Department of State, Division of Licensing Services · Association: New York State Association of REALTORS® · MLS / boards: OneKey MLS (photo rules not public), REBNY RLS (no published photo rule)
Governing text: Real Property Law § 441-c · 19 NYCRR § 175.25(c)(9) · General Business Law §§ 349, 350
Quoted as written, with the source and the day we read it.
“Dishonest and misleading advertisements are prohibited and could subject the real estate broker or salesperson to disciplinary action (Real Property Law § 441-c). All advertisements must include an honest and accurate depiction of the property being sold or leased (19 NYCRR § 175.25(c)(9)).”
Trend alert: A.I. generated home listings, November 13, 2025 — New York Department of State · read September 2, 2026
“While A.I. can help homebuyers imagine what a potential home can look like, these automated technology tools may produce misleading or exaggerated representation of properties. I urge real estate agents to be mindful when listing and consumers to be vigilant when searching for their dream home.”
Secretary of State Walter T. Mosley, trend alert of November 13, 2025 — New York Department of State · read September 2, 2026
“Advertisements shall include an honest and accurate description of the property to be sold or leased.”
19 NYCRR § 175.25(c)(9) — Cornell LII · read September 2, 2026
“[The Department of State may] impose a fine not exceeding two thousand dollars payable to the department of state [for] fraud or fraudulent practices, or for dishonest or misleading advertising”
Real Property Law § 441-c(1) — New York State Senate · read September 2, 2026
“Any digital representation that has been materially altered shall include a clear and conspicuous disclosure that such material alterations are present. […] A digital representation shall disclose that furnishings or finishes were digitally added.”
Senate Bill S9584 (2025–2026), introduced March 26, 2026 — pending, not law — New York State Senate · read September 2, 2026
The four things a listing has to get right.
| Disclosure to buyers | RequiredIn substance: every ad must carry an honest and accurate description, and the Department of State says AI or altered images can breach that. No wording or placement is prescribed today; S9584 would prescribe a clear and conspicuous disclosure if enacted. Source |
|---|---|
| Label on the image | No specific rule foundNo rule places the disclosure on the image. OneKey MLS and REBNY publish no photo rule. |
| Unaltered original | No specific rule foundNo rule found. |
| Off-limits alterations | General rule appliesNothing itemised. The honest-and-accurate-description rule and General Business Law §§ 349 and 350 on deceptive acts and false advertising apply; S9584 targets 'materially altered' representations. Source |
Plain words, consistent with the rule above. Sedam Staging writes the same line into the disclosure file that ships with every listing.
Public decisions and reports involving altered or virtually staged listing photos relevant to New York.
Sedam Staging burns the “Virtually staged” label into every listing image, ships the untouched original beside it, compares every render against the photograph so walls, windows, floors and built-ins never move, and writes the remarks line into the download. See the renders we refused →
Not yet. The Department of State applies the existing rule that every advertisement must include an honest and accurate description of the property, and said in November 2025 that AI-generated or altered images can breach it. Bill S9584 would add an explicit disclosure duty; it was still in committee on September 2, 2026.
That dishonest and misleading advertisements are prohibited, that AI tools may produce misleading or exaggerated representations of properties, and that agents should be mindful when listing. It cited § 441-c, the honest-description rule, and the General Business Law's ban on deceptive acts.
The same four questions, answered from each regulator's own text. The national layer for the United States →
AB 723: the first statute, plus CRMLS and San Diego rules that disagree on where the label goes
Stellar MLS's virtual-staging article, and a state law that bans misleading ads
Four MLSs, four ways to disclose: Houston, San Antonio, Austin and Dallas–Fort Worth
The general-impression test in DOL's advertising guideline, and a members-only NWMLS rulebook
ARMLS's own 'Digitally Altered' watermark, the original beside it, and $200 fines from December 2026
Listing across the border? The rules in Canada, province by province.
How this page was made. Each quotation was read at the linked source on September 2, 2026; our confidence that it is current and complete is high (the statute, the regulation, the Department of State alert and the bill's status were read from the primary pages; the MLS rules are not public). Rules change and boards add policies; the linked documents are the authority, and this is a plain-language summary, not legal advice. Spotted a change? Tell us and we will fix the page.