How to Pass the Tennessee Real Estate Exam on Your First Try

Tennessee's real estate market has boomed in recent years, particularly in Nashville and the surrounding counties. The exam is 130 questions — 80 national and 50 state-specific — with a 70% passing threshold. Administered by PSI.

Tennessee Exam Fast Facts - Questions: 130 (80 national + 50 state) - Passing score: 70% on each section (56 national, 35 state) - Time limit: 4 hours - Provider: PSI - Pre-license education: 90 hours (affiliate broker — Tennessee's entry-level designation) - Governing body: Tennessee Real Estate Commission (TREC)

The Tennessee Real Estate Commission

TREC has 9 members: 6 licensees (including 1 property manager and 1 timeshare licensee) and 3 public members. Members serve 5-year terms.

Key TREC facts: - Affiliate broker licenses renew every 2 years; 16 hours of CE required - New affiliate brokers must complete a 30-hour post-license course within the first year - The Tennessee Real Estate Education and Recovery Account provides compensation; max $15,000 per transaction - TREC enforces Tennessee Code Annotated §62-13 (Real Estate Broker License Act)

Tennessee Licensing Structure

Tennessee uses unique terminology: - Affiliate Broker: entry-level license; must work under a principal broker (like a salesperson in other states) - Broker: supervises affiliate brokers; may operate independently; requires 3 years of experience - Principal Broker: a broker who runs a real estate firm; must hold a broker license

On the exam: "affiliate broker" = salesperson in other states. Know Tennessee's specific terms.

Tennessee Agency Law

Tennessee requires the Tennessee Agency Disclosure form at first substantive contact with a buyer or seller. Tennessee recognizes:

• Seller's agent: fiduciary duties to seller
• Buyer's agent: fiduciary duties to buyer
• Disclosed dual agent: represents both with written consent; limited duties
• Transaction facilitator: assists without representing; owes honesty, care, and accounting

The exam tests: What must a Tennessee licensee do when moving from seller's agent to dual agent? Answer: obtain written consent from both parties before proceeding.

Tennessee Disclosure Requirements

Tennessee's Residential Property Condition Disclosure form is required for most residential sales (1-4 family). Sellers must complete and deliver the form before the buyer makes an offer.

Buyer rights: - Buyer has a right to rescind within 3 business days of receiving the disclosure - If the seller doesn't deliver the disclosure, the buyer can rescind at any time before closing

Tennessee-specific disclosures: - Sinkholes: Parts of Tennessee (particularly Middle Tennessee) have karst topography — limestone bedrock that can develop sinkholes. Known sinkhole activity must be disclosed. - Underground storage tanks: Common in older Tennessee properties; must be disclosed if known - FEMA flood zone: Tennessee has river floodplains (Tennessee River, Cumberland River); flood zone designation required

Tennessee Property Tax

Tennessee has no state income tax (on wages). Property taxes are assessed by county assessors: - Agricultural land has special use value assessment - Residential homestead receives a small discount - Tennessee's Greenbelt Law allows agricultural, forest, and open space land to be assessed at use value rather than market value; penalties apply if the use changes

Topics That Catch Candidates Off Guard

Affiliate broker terminology: Tennessee's "affiliate broker" terminology is unique. Don't confuse it with "associate broker" (a more senior designation in states like Colorado and New Mexico).

Sinkhole disclosure: Tennessee's karst geology makes sinkhole disclosure a state-specific topic. Know what must be disclosed.

3-business-day rescission: Tennessee's specific timeline after disclosure delivery.

Greenbelt Law: Tennessee's agricultural/forest land assessment law affects rural property values and buyer due diligence.

Your 4-Week Tennessee Study Plan

Week 1: National — agency, contracts, ownership, land use, fair housing Week 2: National — financing, valuation, math, environmental Week 3: Tennessee-specific — TREC, licensing terminology, agency law, disclosure form, Greenbelt Law Week 4: Full practice exams. Target 75%+. Drill sinkhole disclosure, affiliate broker vs. broker distinctions, and 3-day rescission timeline.

Practice for the Tennessee Exam

[CARealestate.com/states/tennessee](https://carealestate.com/states/tennessee) has Tennessee-specific practice questions covering TREC rules, agency law, the Residential Property Condition Disclosure, and Greenbelt Law. 5 free questions, no signup needed.

Tennessee's "affiliate broker" terminology and sinkhole disclosure requirement are the two most state-specific topics you'll encounter on the state section. Neither will appear in national prep materials.