Ontario regulator warns against misleading AI real estate staging

The Real Estate Council of Ontario (RECO) has issued a reminder to the real estate industry regarding the use of AI-generated or virtually staged property photos. The regulator emphasized that all advertisements must comply with the Trust in Real Estate Services Act, which prohibits false, misleading, or deceptive information.

Industry experts warn that AI staging can create significant discrepancies in spatial perception. Real estate broker Ravi Singh noted that AI tools can alter room proportions, lighting, and wall decorations, potentially leading buyers to believe furniture will fit in spaces where it actually cannot. This can result in buyer disappointment and wasted time for both clients and brokers.

While the Toronto Regional Real Estate Board (TRREB) noted that most brokers follow existing guidelines, recent investigations found some listings on Realtor.ca lacked clear disclosures regarding virtual modifications. The Ontario Real Estate Association (OREA) is currently researching updated usage guidelines to keep pace with evolving AI technology.