New Berkeley Form: Updated BESO Responsibilities for Buyers & Sellers
Robert Jones • April 6, 2026
New Berkeley Form: Updated BESO Responsibilities for Buyers & Sellers
Berkeley’s Building Emissions Saving Ordinance (BESO) has always been one of those “I’ll deal with it later” items for both buyers and sellers—and that “later” is starting to get more expensive. With the new BESO deferral costs, you can’t just ignore the required energy and electrification work and hope it disappears in escrow. The city is essentially saying: if you want to defer the upgrades, you’ll pay for the privilege. That shift changes how I’m advising clients on timing, pricing, and offer strategy.
For sellers, the key question is now: do we invest up front in required BESO items, or do we price and negotiate with the new deferral costs in mind? In some cases, it will make more sense to tackle certain improvements before you list, especially highly visible ones that buyers care about anyway (like heating systems or old water heaters). In other cases, it may be smarter to disclose, and price accordingly.
A formal 'deferral of this responsibility to Buyer after Close of Escrow OR Seller addressing needed repairs for compliance is now a Point-of-Sale Ordinance. If a property listed for Sale is not BESO Compliant, and Sellers would like to defer any compliance work to Buyer - The City of Berkeley requires a non-refundable $2,500.00 from Seller for this.
If we are non-compliant, but any needed repairs or improvements for compliance can be put in place before close of Escrow for less than $2,500 - it may be advisable to coordinate that work - and of course, we have service providers who can provide estimates and complete such work as desired.
For buyers, these new deferral costs mean you need to look beyond just the purchase price and property taxes. When you’re buying in Berkeley, part of your long‑term cost picture now includes: what BESO work has already been done, what’s still required, and whether the seller is handling it or deferring it at your expense down the line. I’m walking buyers through a much more detailed review of the BESO report, estimates for likely upgrades, and how that compares to the city’s deferral structure. The goal is to write offers that reflect not just what the home is today, but what it will cost to bring it into compliance over the next few years.
On properties where BESO is deferred from Buyer to Seller, the Buyer will also provide a deposit of $2,500.00 to the City of Berkeley for this, though on the Buyer Side, the $2,500.00 is refunded once work is completed and a Compliance Certificate is issued.
If you own in Berkeley or are thinking about buying here, the bottom line is that BESO is no longer a small line item—it’s a strategic one. The new deferral costs make it even more important to get good advice before you list or write an offer, so you’re not surprised by city‑mandated expenses after you’re already in contract. I’m happy to sit down with you, review your specific property or target homes, and map out a clear plan: what’s required, what it might cost, and how to structure your sale or purchase so BESO becomes a managed part of the process, not a last‑minute crisis.
