Why Home Buyers in Berkeley Need to Understand BESO
Have you heard of BESO? If you’re looking for house in Berkeley, or trying to sell one, BESO compliance is now required (as of the time of this post, in April 2026) and can cost thousands of dollars if a home is not compliant.
The Basics
BESO stands for the Building Emissions Saving Ordinance in the City of Berkeley. Sellers of single family homes in Berkeley are now required to have a BESO inspection prior to listing their home, or pay a $500 non-compliance fee.
If the home does not receive a high enough score at the inspection, the seller is required to either complete upgrade requirements, or defer those to the buyer. This is where it starts to affect buyers. If the seller defers to the buyer, $5000 has to be deposited and will be held by the City of Berkeley. According to the BESO website, typically this amount is split between the seller and the buyer.
After close of escrow, the buyer can claim a refund of the $5000 if they complete upgrades and obtain a certificate of compliance within the time limit. For details about how a home can qualify as BESO exempt, and what kinds of upgrades are typically required, visit the BESO website at www.berkeleyca.gov/BESO and this page about the specific requirements. For a list of inspectors who are approved to perform BESO inspections, see this list from the City of Berkeley
Potential Costs for Buyers
- $2500 during escrow (which can be refunded after upgrades are completed along with the $2500 deposited by the seller)
- Cost of improvements for the home to be BESO compliant
- Cost of an inspection after upgrades are completed
Bottom Line
Many cities have requirements that can fall to either the buyer or seller. For example, many cities in the East Bay require sewer lateral compliance, which can be completed by either the buyer or the seller, with cost varying. In a hot market, buyers might have to be prepared to pay a little extra to deal with these requirements, while in a slower market, sellers are incentivized to take care of them prior to listing their home, to make the home more attractive to potential buyers.
If you are looking at homes in Berkeley, be sure to ask your agent if the home is BESO compliant, as it could save you thousands of dollars!
All of the information in this post was obtained from the links provided and is not legal advice. If you have legal questions about a real estate issue you should always contact your attorney.
