Berkeley Home Sales Face New Climate Rules

Berkeley now requires sellers of single-family homes and duplexes to clear a new climate-related checklist before a sale can close. The rules took effect on January 1, 2026, under amendments to the city’s Building Emissions Saving Ordinance, or BESO. City guidance says homeowners must obtain a Home Energy Score before listing a property and then either complete qualifying upgrades before the sale closes or shift that obligation to the buyer. The City of Berkeley says the ordinance is meant to cut greenhouse gas emissions from existing buildings and improve resilience and public health. City materials say the program also aligns with Bay Area Air District zero-NOx appliance rules that begin in 2027 for new gas water heaters and furnaces. Berkeley City Council adopted the BESO amendments on April 15, 2025, according to the city’s overview of the changes. (berkeleyca.gov) ### Which Berkeley home sales are covered right now? January 1, 2026, is the key date for one- and two-unit properties. Berkeley’s time-of-sale rules now apply to single-family homes and duplexes, while triplexes and fourplexes remain under the prior assessment-only system until January 2028, according to the city’s website. Condominiums and accessory dwelling units are excluded from the new small-residential upgrade requirements, the city says. (berkeleyca.gov) Berkeley’s broader BESO framework covers other building types on separate tracks. The city says one- and two-unit homes require an energy assessment at listing and resilience upgrades tied to the sale, while larger multifamily and commercial buildings face assessment and, in some cases, benchmarking obligations based on size. ### What does a seller have to do before putting a house on the market? (berkeleyca.gov) Before listing, Berkeley requires a seller to hire a registered assessor and obtain a Home Energy Score report. The city says sellers must post that score in the property’s multiple listing service notes and include the report in disclosure and transfer documents. Home Energy Score reports remain valid for five years, and the city says failure to complete and disclose the report carries a $500 non-compliance fee. (berkeleyca.gov) The Home Energy Score is a federal-style rating on a 1-to-10 scale, according to Berkeley’s compliance guide. The city says the report gives buyers a snapshot of a home’s energy performance and identifies possible upgrades that could reduce energy use and emissions. ### How do the upgrade rules work when the sale closes? Berkeley requires sellers to choose among compliance paths before a sale is finalized. (berkeleyca.gov) City guidance says one option is to complete enough qualifying work to reach at least six credits under the city’s resilience standard, with credit available for some improvements completed in the previous five years. (berkeleyca.gov) The city’s menu includes heat pump water heaters, heat pump HVAC systems, electrical panel upgrades, solar-plus-storage systems, duct work, insulation and EV-related electrical work. Berkeley’s overview says a heat pump water heater, heat pump HVAC system, panel upgrade or solar-plus-storage installation can each satisfy the full six-credit requirement on their own. A second path allows an exemption if the home already uses electric heat pumps for water heating, space heating or both, according to the city. (berkeleyca.gov) A third path lets the seller defer the upgrade obligation to the buyer. ### Who pays if the work is deferred to the buyer? Berkeley’s amendment overview says a $5,000 cash deposit, split between buyer and seller, is held through escrow to help cover compliance costs when upgrades are deferred. (berkeleyca.gov) The city says the money is refunded once the required work is completed, and owners can seek an early refund by showing evidence such as permits and contracts for qualifying work. (berkeleyca.gov) The city’s compliance materials say sellers must also submit documentation through the BESO portal and pay a $150 filing fee to obtain a BESO certificate of compliance. ### What comes next for Berkeley homeowners and buyers? 2027 is the next outside deadline cited in Berkeley’s guidance. The city says Bay Area Air District zero-NOx rules will prohibit the sale and installation of new NOx-emitting gas water heaters and furnaces starting that year, and Berkeley presents the home-sale upgrade program as a way to prepare owners for that shift. (berkeleyca.gov) (berkeleyca.gov) January 2028 is the next local expansion date. Berkeley’s website says sellers of triplexes and fourplexes will then move into the same time-of-sale upgrade system now applied to single-family homes and duplexes. (berkeleyca.gov) (berkeleyca.gov)