Berkeley BESO Guide
A practical time-of-sale guide from The Home Factor
Guiding Older Homes into Newer Hands
Buying or selling in Berkeley? The Building Emissions Saving Ordinance (BESO) brings energy assessments, disclosures and resilience upgrades into the transaction. Here is how to plan for them.
Last reviewed September 27, 2026. Includes the City’s resale-deposit update effective September 30, 2026.
The essentials
Assess before listing. Choose a compliance path before closing. Keep the City’s documentation with the transaction file.
6 credits in qualifying upgrades for each covered dwelling unit.
$5,000 deposit per noncompliant building when upgrades are deferred: $2,500 from the seller and $2,500 from the buyer.
2 years after the sale for the buyer to complete deferred upgrades and obtain a compliance certificate.
BESO does not impose a blanket requirement to remove functioning gas appliances. Several compliance paths are available.
Which properties are covered?
Single-family homes and duplexes: energy assessment and resilience-upgrade requirements apply from January 1, 2026.
Triplexes and fourplexes: energy assessments apply now; resilience-upgrade requirements begin January 1, 2028.
Condominiums and ADUs: exempt from the resilience-upgrade requirement. Confirm the assessment requirements and document applicable exemptions with the City.
For a parcel with multiple separate buildings, confirm compliance for each building. The upgrade standard is measured per covered unit, while a deferral deposit applies per noncompliant building.
Start before the home is listed
Hire a City-registered assessor. Obtain a Home Energy Score assessment for each covered unit. Assessments generally remain valid for five years.
Make the disclosures. Include the score in the MLS listing and provide the assessment report and City assessment confirmation in the disclosures and transfer documents.
Review existing improvements. Gather permits, invoices and equipment records. Qualifying work completed within the previous five years may count.
The City’s guide estimates assessment costs at $200–$600 per unit. The assessment-disclosure noncompliance fee is $500. Confirm current charges with the City and assessor.
Three paths through the sale
1. Complete qualifying upgrades
Reach at least six credits for each covered unit. Choose eligible measures that suit the home. A shared system may count for the units it serves, subject to the City’s standards.
Submit the supporting documents and $150 filing fee through the City’s BESO portal. Obtain the compliance certificate and include it in the closing file.
2. Document an approved exemption
A qualifying heat-pump water heater or heat-pump HVAC system serving all units may exempt the building from additional resilience upgrades. Submit the required documentation and fee to obtain the City’s certificate.
A fully electric building with capped gas service may qualify for exemption from both the assessment and upgrades, subject to City verification. Certain transfers and approved income-qualified first-time buyers may also qualify. Do not assume an exemption: confirm it with the City and retain its documentation.
3. Defer upgrades to the buyer
The buyer and seller coordinate the BESO Upgrade Deposit Form with the title company before closing. Title submits a $5,000 deposit, split equally between seller and buyer. A separate form and deposit are required for each noncompliant building.
The buyer then has two years from the sale to meet the six-credit standard, submit the required evidence and $150 filing fee, and obtain a compliance certificate.
After compliance, the buyer can request the full $5,000 refund by submitting the certificate and the City’s refund form. The seller’s contribution is not automatically forfeited to the City at the first sale.
A one-year extension may be requested before the original deadline. Extensions beyond three years require special circumstances. An early refund may be available with a licensed contractor’s contract and permits, subject to City approval.
Upgrade credits at a glance
6 credits: heat-pump water heater; heat-pump HVAC; qualifying knob-and-tube replacement with 240-volt prewiring; smart service panel; electrical service-panel upgrade.
3 credits: solar photovoltaic system; battery energy storage.
2 or 4 credits: qualifying windows; wall insulation.
2 credits: EV charger; electric or induction range; attic insulation; qualifying HVAC ducts; whole-house fan; Home Energy Score of 9 or 10.
1 or 2 credits: electric dryer; 240-volt prewiring.
1 credit: floor or crawlspace insulation; greywater system; air sealing.
Each measure has specific eligibility, permitting and verification standards. Use the City’s current measure specifications before selecting work or counting credits.
Reselling before completing deferred upgrades?
Effective September 30, 2026: a fresh sale requires a fresh deposit.
Under the City’s revised administrative regulations, if a buyer resells before the compliance period expires without obtaining a compliance certificate:
The original seller’s $2,500 contribution is forfeited.
The new seller and new buyer must submit a fresh $5,000 deposit, split $2,500 each.
Once the City receives the new deposit, it notifies the original buyer—now the seller—that they may reclaim their original $2,500 contribution.
The refund request must arrive within 60 calendar days of the City’s notification. Otherwise that contribution is forfeited. It is also forfeited if the new deposit is not received.
Review the City’s administrative regulations, version 5.1, effective September 30, 2026, with your title company when planning a resale. The City-hosted PDF filename still includes “v5.0.”
Your escrow checklist
Assessment report and City assessment confirmation are in the disclosure file.
The compliance certificate or approved exemption is documented, or the signed deposit form and payment are arranged with title.
Separate buildings and covered units have been accounted for.
The buyer understands the upgrade obligation, due date and refund process.
Permits, invoices and equipment details are saved for the compliance application.
Common questions
Must every gas appliance be replaced?
No. BESO uses a credit-based upgrade system and approved exemptions. Air District appliance-replacement rules are separate and should be checked independently when planning equipment work.
Does a duplex require two $5,000 deposits?
A deferral deposit is assessed per noncompliant building, not per unit. A single duplex building generally requires one deposit, while each covered unit must meet the applicable upgrade standard.
Who gets the deposit back?
For a completed deferral, the complying buyer may request the full $5,000 refund after obtaining the City certificate. A resale before compliance follows the separate resale rules described above.
Official resources
BESO help desk: BESO@BerkeleyCA.gov · 510-981-7465
Let’s plan the next step for your home
We can help you organize the transaction timeline, identify the documents to gather and coordinate with your assessor and title team.
This guide summarizes City materials reviewed on September 27, 2026. Requirements and fees can change; the City’s current rules and its determination for the property control.