Tennessee Real Estate Exam Topics: Complete Breakdown

# Tennessee Real Estate Exam Topics: Complete Breakdown

The Tennessee real estate exam is 120 questions divided into two independent sections. Here is a comprehensive breakdown of what each section covers.

National Section (80 Questions)

Property Ownership - Fee simple, life estates, leasehold estates - Joint tenancy vs. tenancy in common (right of survivorship) - Community property vs. separate property (Tennessee is NOT a community property state) - Encumbrances: easements, liens, deed restrictions, encroachments

Land Use Controls and Regulations - Zoning ordinances and variances - Eminent domain and condemnation - Environmental regulations: CERCLA, wetlands - Private restrictions (CC&Rs)

Valuation and Market Analysis - Three appraisal approaches: sales comparison, cost, income - Principle of substitution, conformity, contribution - Gross rent multiplier (GRM) and cap rate

Financing - Types of mortgages: conventional, FHA, VA, USDA - Loan-to-value ratio, PMI, points - TILA, RESPA, Dodd-Frank disclosures - Foreclosure: Tennessee is a deed of trust state — non-judicial foreclosure is common

Agency - Types of agency relationships - Fiduciary duties (OLDCAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care) - Buyer representation and listing agreements - Sub-agency and referral relationships

Contracts - Offer and acceptance, consideration, capacity, legality, writing requirement - Contingencies, earnest money, and closing procedures - Options and rights of first refusal

Fair Housing - Federal protected classes (7 classes) - Prohibited practices: steering, blockbusting, redlining - ADA and disability accommodations

Property Management and Leasing - Lease types: gross, net, percentage - Landlord obligations and tenant rights - Security deposits

State Section (40 Questions)

Tennessee License Law (TCA Title 62, Chapter 13) - TREC: 9 members, composition and appointment - Affiliate broker vs. broker vs. principal broker distinctions - Pre-license: 90 hours (60 hr fundamentals + 30 hr affiliate broker) - License renewal: every 2 years, 16 CE hours - Trust account requirements and handling of client funds

Agency in Tennessee - Prohibition on dual agency in residential transactions - Written agency disclosure requirements - Buyer agency agreements - Transaction broker rules

Tennessee Residential Property Disclosure Act - Applies to 1-4 unit residential properties - Seller must disclose known material defects using state form - Exemptions: estate sales, foreclosures, certain transfers between family members

TREC Disciplinary Process - Grounds for suspension, revocation, or civil penalty - How complaints are filed and investigated - Hearing procedures

Tennessee-Specific Closing and Transfer - No state income tax (relevant for investment property discussions) - Transfer tax: $0.37 per $100 of consideration - Deed requirements and recording procedures

Mastering both sections requires treating Tennessee law as a separate study subject, not just an appendix to national content.