What Do Berkeley Sellers Need to Know About BESO?

BESO is Berkeley's Building Emissions Saving Ordinance. It is a City rule, so it applies only in Berkeley and not in the other East Bay cities. Since January 1, 2026, it applies when a single-family home or a duplex is sold.

Condominiums and accessory dwelling units (ADUs) are not covered. Triplexes and fourplexes join on January 1, 2028. Until then, they need only the energy assessment before listing.

As a Top East Bay Realtor with eXp Realty, helping buyers and sellers in Berkeley and across the East Bay, I raise BESO in my first conversation with a Berkeley seller, because it has to be handled before the home goes live.

First, you get a Home Energy Score from a BESO-registered assessor. In a building with more than one unit, each unit gets its own score.

The score goes into the listing's property notes on the MLS, and the full report goes into your disclosure documents. A score is valid for five years. If it is not done and disclosed, the City can charge a $500 non-compliance fee.

Book the assessment early. It is the first step, and everything else waits on it.

Before the sale closes, the City gives you three ways to satisfy BESO, and you choose one. Which path is right depends on your home, the market, and the offers. It is part of the negotiation, and I would never tell you it is automatic either way. Here are the three.

The City lists the upgrades and what each is worth. The biggest ones earn 6 credits on their own: a heat pump water heater, a heat pump HVAC system, replacing knob and tube wiring with 240V pre-wiring, a smart service panel, and an electrical service panel upgrade. Solar panels and battery storage earn 3 each. Smaller items, like an EV charger, an electric or induction range, attic insulation, duct improvements, a whole-house fan, or a Home Energy Score of 9 or 10, earn 2 each. A few quick wins, like air sealing, crawlspace insulation, and a greywater system, earn 1 each.

Four measures are scaled. Window replacements and wall insulation earn 2 credits when they cover 50 to 75% of the home and 4 credits at 76% or more. An electric resistance dryer earns 1 credit and a heat pump dryer earns 2. Pre-wiring earns 1 credit for at least two new 240V receptacles and 2 credits for three or more. Upgrades only count if the work had a City permit and passed its final inspection, and the permit should say "for BESO compliance." Work you finished in the five years before your sale counts too, so older upgrades may already be earning credits.

To see where your home stands, use the BESO credit calculator.

When the work is passed to the buyer, the $5,000 deposit is held, $2,500 from each of you. The buyer then has two years after closing to complete the upgrades, and can request a one-year extension through the City's portal.

When the Certificate of Compliance is issued, the buyer gets the full $5,000 back, including the $2,500 you put in. In effect, your share is a $2,500 credit to the buyer, so weigh it against doing the work yourself.

A buyer can also get the deposit earlier by showing a signed contract with a licensed contractor and the building permits.

The upgrades themselves are a separate cost for the buyer. How the deposit is split, and how the buyer prices the work into an offer, is a negotiation. That is another reason to decide the path before the home goes live, not after the first offer.

Some are, and the City verifies each one.

• Condominiums and ADUs are not covered.
• All-electric homes with no gas use and capped gas lines can be exempt, with verification.
• First-time buyers enrolled in an income-qualified program, such as CalPLUS or MyHome, can be exempt, with verification.

If you think your home or your buyer might qualify, tell me early so we can confirm it with the City before it affects a contract.

There is no one right answer, so these are the questions I work through with each seller.

Does the home already have a heat pump? If so, the exemption may be the simplest path.

How many credits do you already have? Permitted work from the last five years counts. A seller who is a few credits short may find finishing the work is cheap insurance.

How much time do you have? Permits and contractors take time. If your timeline is short, passing the work to the buyer may fit better.

How is the market? When buyers are competing, many will take on the work. In a slower market, a finished certificate can be a selling point.

I look at the Home Energy Score first, and then we choose together.

Here is the order I use:

1. We talk through your home and your timeline.
2. You book the Home Energy Score with a registered BESO assessor.
3. We list what the home already has and add up the credits. The BESO credit calculator is a good first pass.
4. We choose a path: upgrades, the heat pump exemption, or passing the work to the buyer.
5. We put the score in the listing and the report in your disclosures.
6. If you finish the work, we file for the Certificate of Compliance before closing. If you pass it to the buyer, the deposit form is signed with the buyer and title company.

Booking the score late. It is needed before listing, so waiting pushes back your launch.

Counting unpermitted work. Credits require permitted work that meets code. Ask before you assume an old project counts.

Forgetting the score goes in the disclosures. A missing disclosure can bring the $500 fee.

Treating the path as automatic. It is a decision, and it is part of the deal.

Start with your address and your timeline. Tanja Odzak is a Top East Bay Realtor with eXp Realty, helping buyers and sellers in Berkeley and across the East Bay, and I will walk you through BESO for your specific home before you list. The City can update the rules, so check the City's BESO page before you decide. This is general information, not legal, tax, or lending advice.