BROKER RISK MANAGEMENT WEEKLY PRACTICE TIP
Generative Artificial Intelligence, known generally as AI, has greatly expanded and enhances the ability for real estate professionals to create and manipulate images. Any time that you publish or distribute, in any medium or for any purpose, an image that was created or altered by AI, or any other App used for that purpose, it is essential that you fully disclose that fact. Failure to do so could result in penalties. For example:
- Department of Real Estate: The DRE states that “Real estate licensees may not publish, advertise, distribute, or circulate any material or information that is false, deceptive, or misleading. Putting advertising together that is false, misleading, or deceptive may subject a licensee to disciplinary action. Licensees have a clear responsibility for ensuring their advertising is not misleading or deceptive” Violations can lead to sanctions including fines, suspension and even license revocation.
- Code of Ethics: Article 12 of the NAR Code of Ethics states that REALTORS® “shall present a true picture in their advertising, marketing and other representations.” Violations can result in fines or suspension or expulsion from being a REALTOR®.
SCENARIOS
SCENARIO ONE: You take an exterior photo of a property you have listed and remove undesirable elements, such as utility wires, trash cans, debris, etc. You then enhance the colors to brighten the image. Finally, you delete the dead tree in the yard.
RECOMMENDATION: Post the following disclosure/disclaimer adjacent to any such image or groups of images:
“This image has been altered and does not portray the property as it exists today. Certain elements may have been deleted, color, brightness and contrast have been edited.
SCENARIO TWO: You take a photo of the living room which is cluttered with seller’s dated furniture. You use an AI app to remove that furniture and then add new furniture to update to look of the room making it appear more spacious. Finally, you change the color of the walls to a lighter more neutral color.
RECOMENDATION: Post the following disclosure/disclaimer adjacent to any such image or groups of images:
“Furnishings shown are images generated by AI. These images do not portray the property as it currently exists and may not accurately depict the true scale of the space. The items pictured are not included in the sale. Neither seller nor listing agent has or will investigate or verify the accuracy of the relative scale of the furnishing and or the space in these images.”
SCENARIO THREE: You use AI to create an image of a charming fictional home of a desirable style in your market area to use in a social media posting to attract attention to you advertising your services. You do not represent that this is an actual home.
RECOMMENDATION: This practice is discouraged unless the house is only used for background. Recently, we had an Ethics hearing at a local association of Realtors which found a violation against an agent who undertook this practice.
PRACTICE TIPS
- When using AI to create or alter an image be sure to use a proper disclosure/disclaimer to accurately and fully advise the viewer of the true nature of the image.
- Never create an image or images of a fictional property and pass it off in any medium as a real property for any purpose including looking for buyers to represent.
- All text created by AI must be checked separately for accuracy prior to using.
This Weekly Practice Tip is an attorney client privileged document and is for the exclusive use of clients of Broker Risk Management and their agents. It may not be reproduced or distributed without the express written consent of Broker Risk Management. The advice and recommendations contained herein are not necessarily indicative of standards of care in the industry, but rather are intended to suggest good risk management practices