Key facts
- Real estate agents are responsible for the accuracy of AI-generated listing content.
- AI tools can misrepresent property features, such as basement bedrooms or shared amenities.
- Subjective adjectives and trademarked terms in AI-generated text can lead to liability.
- Agents and their brokers, not AI companies, will be sued for inaccurate listings.
- The quality of AI output is directly proportional to the quality of the input provided by the user.
- Agents should act as curators of AI-generated listings, not just creators.
Real estate agents remain ultimately responsible for the accuracy of property listings, even when using artificial intelligence tools, according to industry experts. Nathan Brannen, chief product officer at Restb.ai, and Troy Palmquist, real estate advisor and founder of HomeCode Reviews, emphasized that agents must diligently review AI-generated content to avoid legal liability and protect clients.
Brannen stated that agents should be accountable for everything they put in a listing, whether it's manually entered or AI-generated. He noted that AI tools are designed to save time, and the review process should be quicker than creating content from scratch. According to the National Association of Realtors’ 2026 Technology Report, 48% of Realtors use AI regularly, with OpenAI's ChatGPT being the most dominant tool. Listing descriptions are the most common application, used by 75% of agents.
Palmquist highlighted that the quality of AI output directly correlates with the quality of the input. He warned that simply entering a property address can lead to generic descriptions that fail to capture unique selling points. Common AI errors include misrepresenting below-grade bedrooms, fabricating details when given unclear direction, and misrepresenting property features based on photos. Palmquist also pointed out that AI can hallucinate in imagery, adding incorrect details like pot fillers or altering flooring transitions.
Liability can arise from subjective adjectives like 'quiet' or 'family friendly,' as well as fair housing concerns related to phrases like 'walking distance.' Trademark issues, such as using a brand name like Caesar Stone instead of a generic term like quartz countertop, can also trigger problems. Palmquist was clear that lawsuits for inaccurate listings would target real estate agents and their brokers, not the AI companies themselves. He stressed that agents should act as curators of AI-generated content, ensuring its accuracy and appropriateness.