Rising use of AI-staged real estate photos raises questions about misleading homebuyers
In Ontario, virtual staging is governed under existing regulations around advertising
If you’ve been searching for a home in Ontario, you may have come across a listing where the furniture doesn't look quite right or where the size of the rooms is noticeably different in person than online.
Artificial intelligence is making it increasingly easy for real estate agents and sellers to virtually stage properties — adding furniture, artwork and decor to listing photos without physically moving a single item.
The technology offers an affordable way to help prospective buyers envision how they might use an empty space, and there are advertising rules in place to protect them.
uncertain
they → rise → them
But real estate experts warn altered images could mislead buyers in some cases.
uncertain
images → warn → cases
“The biggest challenge with AI staging is space,” said Ravi Singh, a real estate agent with RE/MAX Hallmark Realty.
asserted
Singh → say → Realty
“You might take a look at a photo and think 'OK, that easily fits a love seat, sofa, coffee table and end tables.'
uncertain
that → take → seat
And then you walk into an empty space, and you say, 'Wait a second, how on earth did all that fit?'” Singh said.
asserted
Singh → walk → earth
“It's easy to do online, it's different to stage in person.”
asserted
it → do → person
Ravi Singh, a real estate agent at REMAX Hallmark Realty Ltd., says virtual staging offers a privacy solution for rental properties, for example if a tenant prefers not to have their personal belongings visible in public listing photos.
asserted
belongings → say → photos
Beyond furniture, differences between original and virtually staged images can change fundamental room characteristics, Singh said, as AI tools can alter wall moldings, room proportions and lighting.
asserted
tools → stag → moldings
Singh says those kinds of discrepancies can create unmet expectations during viewings and wasted time for both home seekers and agents.
asserted
kinds → say → seekers
The Real Estate Council of Ontario (RECO) said in a statement that while AI is increasingly used in property marketing, its use must not alter a registrant’s obligations under the Trust in Real Estate Services Act.
asserted
use → say → Act
The act says "advertising must never be false, misleading, or deceptive."
asserted
advertising → say → ?
RECO said consumers must be able to clearly identify when images have been virtually altered or AI-generated.
asserted
images → say → ?
"That typically involves including a clear disclosure on the image itself or within the property listing," said a statement from Tess Lin, director of communications and stakeholder relations at RECO.
asserted
statement → involve → RECO
John DiMichele, CEO of the Toronto Regional Real Estate Board (TRREB), also stressed that virtual staging must maintain factual integrity.
asserted
staging → stress → integrity
“For instance, don't put lamps in a room that doesn't have outlets, unless you clearly say there are no outlets there,” DiMichele said.
asserted
DiMichele → put → outlets
CBC Toronto was able to find a number of active property listings in recent weeks that weren't clearly labelled on Realtor.ca.
asserted
that → find → Realtor.ca
Such listings are then picked up on other real estate sites.
asserted
listings → pick → sites
But DiMichele said that the majority of agents are following the guidelines.
asserted
majority → say → guidelines
Where AI staging is headed
The Ontario Real Estate Association said in a statement that as AI tools continue to develop, real estate organizations across Canada are actively establishing updated standards for usage.
asserted
organizations → head → usage
Singh suggested those standards may need to expand beyond simple image labels.
“I do think that disclosure is a starting point.
uncertain
disclosure → suggest → labels
I think the next step might be even mentioning what tools were being used,” he said.
uncertain
he → think → ?
How artificial intelligence is changing the real estate game
- Audio
More P.E.I. home listings are being advertised with virtual staging
For prospective buyers navigating current listings, he recommends being proactive.
asserted
he → change → listings
"Buyers need to pay attention to the details, read the dimensions and the client remarks in the listings," he said.
asserted
he → need → listings
Singh adds that if you're unsure whether a listing features virtual staging or how accurately it reflects the space, ask your real estate agent for clarification before booking an in-person viewing appointment.
asserted
it → add → appointment
The Aporia
