Tennessee Real Estate Practice Exam
(Free Questions & Answers)
The Tennessee real estate exam is administered by the Tennessee Real Estate Commission (TREC) and is notable for Tennessee's unique distinction between Affiliate Broker and Principal Broker — all new licensees in Tennessee start as Affiliate Brokers and must work under a Principal Broker. This two-tier structure and the specific supervisory requirements are heavily tested. Tennessee's mandatory seller disclosure form (TREC Residential Property Condition Disclosure) and Tennessee's strict advertising rules — including team name restrictions — are also common on the state exam.
Administered by: Tennessee Real Estate Commission (TREC) · 120 questions · Passing score: 70%
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Free Tennessee Real Estate Practice Exam Questions
Test your knowledge with these Tennessee real estate practice questions. Each question is based on topics from the Tennessee Real Estate Commission (TREC) exam and includes detailed explanations.
Q1. Which agency regulates real estate licenses in Tennessee?
Explanation
The Tennessee Real Estate Commission (TREC) is the state agency responsible for licensing and regulating real estate licensees in Tennessee.
Q2. In Tennessee, when representing a buyer, an affiliate broker is required to:
Explanation
Tennessee law requires agency disclosure to be provided to a buyer before any substantive discussion about real property, so they understand who the broker represents.
Q3. In a Tennessee real estate purchase contract, earnest money serves as:
Explanation
Earnest money demonstrates the buyer's good faith and becomes part of the consideration for the contract. It is typically applied toward the purchase price or closing costs at settlement.
Q4. The Federal Reserve's primary tool for influencing mortgage interest rates is:
Explanation
The Federal Reserve influences interest rates primarily by adjusting the federal funds rate—the rate at which banks lend to each other overnight. Changes in this rate affect mortgage rates throughout the economy.
Q5. Tennessee is NOT a community property state. Instead, it follows the principle of:
Explanation
Tennessee, like most non-community property states, follows common law (separate property) principles. Property owned individually before or during marriage (unless titled jointly) belongs to the individual spouse.
Q6. The income approach to value is most appropriate for:
Explanation
The income approach is most appropriate for income-producing properties such as apartment complexes, office buildings, and commercial properties. It estimates value based on the property's ability to generate income.
Q7. Redlining is a discriminatory practice in which lenders:
Explanation
Redlining is the illegal practice of refusing to make loans, provide insurance, or offer other financial services in certain geographic areas based on the racial or ethnic composition of those neighborhoods.
Q8. In Tennessee, real estate closings are most commonly handled by:
Explanation
Tennessee is an attorney state where real estate closings are commonly conducted by a licensed attorney or a title company. Attorneys handle title examination and closing procedures.
Q9. A home sells for $265,000. The seller pays a 5.5% commission. What is the total commission dollar amount?
Explanation
Commission = $265,000 × 0.055 = $14,575.
Q10. Radon is a naturally occurring radioactive gas that enters homes primarily through:
Explanation
Radon is a colorless, odorless gas produced by the decay of uranium in soil and rock. It enters buildings through cracks in foundations, floors, and walls. Tennessee has areas with elevated radon levels, particularly in East Tennessee.
Q11. A variance is a permission granted by local government to:
Explanation
A variance allows a property owner to use or develop land in a way that deviates from the strict letter of the zoning ordinance, typically because of unique physical characteristics of the property that create an undue hardship if the code is strictly applied.
Q12. In Tennessee, a property manager who collects rent and manages properties for others must hold:
Explanation
In Tennessee, property management activities — including leasing, renting, and collecting rent for others — constitute acts requiring a real estate license. A property manager must be licensed and affiliated with a principal broker.
1,500+ questions · Timed mock exams · Detailed explanations
Tennessee Real Estate Exam — What to Expect
What Is On The Tennessee Real Estate Exam?
The Tennessee real estate salesperson exam is administered by the Tennessee Real Estate Commission (TREC) and tests both national real estate principles and Tennessee-specific laws and regulations. The exam contains 120 multiple-choice questions, and you must score at least 70% to pass.
The national portion covers topics that apply in every state: property ownership, land use controls, valuation and market analysis, financing, agency law, contracts, leasing and property management, transfer of title, fair housing laws, and real estate calculations. The state portion tests knowledge specific to Tennessee — including regulations set by the Tennessee Real Estate Commission (TREC), Tennessee agency disclosure requirements, and state-specific contract and closing practices.
Topics covered on the Tennessee exam include: Property Ownership, Agency Law, Contracts, Finance, Tennessee License Law, Fair Housing. Candidates who struggle on the TN exam typically underestimate the state-specific portion — the national content is well-covered by most study materials, but Tennessee law questions require targeted preparation.
How Many Questions Are On The Tennessee Exam?
The Tennessee real estate salesperson exam has 120 multiple-choice questions. The exam is divided into a national section covering general real estate principles and a state section covering Tennessee-specific laws administered by the Tennessee Real Estate Commission (TREC). You have 3.5 hours to complete the exam.
Tennessee Real Estate Exam Passing Score
You need a 70% to pass the Tennessee real estate exam. The first-time pass rate in Tennessee is approximately 56%, which means preparation is essential — most candidates who fail do so because they focused on national content and underestimated the TN-specific portion. Our Tennessee practice exam is built specifically around the Tennessee Real Estate Commission (TREC) exam outline.
Most Difficult Topics On The Tennessee Exam
These are the areas where Tennessee candidates most commonly lose points.
Tennessee Real Estate Commission's licensing structure — the Affiliate Broker and Principal Broker distinction — is unique and heavily tested. All new licensees start as Affiliate Brokers and must work under a Principal Broker's supervision.
Tennessee's two-tier licensing system means Affiliate Brokers have specific restrictions on what they can do independently vs. under supervision. Understanding these limitations and the promotion pathway is a commonly tested concept.
Tennessee's mandatory Residential Property Condition Disclosure form has specific categories and exemptions. When the form is required, what must be disclosed, and buyer remedies for non-disclosure are tested on the state exam.
Tennessee has strict rules on team names and advertising — team names may not imply a separate brokerage, and all advertising must include the supervising broker's firm name. These rules are tested on the state portion.
Tennessee Real Estate Math
The Tennessee real estate exam includes math questions covering commission calculations, loan-to-value (LTV) ratios, property tax prorations, area and volume, and appreciation/depreciation. A common example: if a property sells for $350,000 and the total commission is 6%, split equally between listing and buyer's broker, each side earns $10,500. Proration questions — such as calculating how many days of property taxes a seller owes at closing — are also common. On the TN exam, you will not need a calculator for most math questions, but you do need to understand the formulas. Practice the "T-bar" method for commission splits and the 360-day banker's year for prorations.
How To Get Your Tennessee Real Estate License
- 1Complete 90 hours of state-approved pre-license education covering topics required by the Tennessee Real Estate Commission (TREC).
- 2Submit your application to the Tennessee Real Estate Commission (TREC) and pay the required fees (exam fee: $63).
- 3Pass the Tennessee real estate salesperson exam (120 questions, 70% to pass).
- 4Complete a background check and fingerprinting as required by Tennessee law.
- 5Find a licensed sponsoring/employing broker to activate your license.
- 6Complete any required post-licensing education within the timeframe set by the Tennessee Real Estate Commission (TREC).
Best Study Strategy For The Tennessee Exam
Start with Tennessee license law first. State-specific regulations administered by the Tennessee Real Estate Commission (TREC) make up a significant portion of the TN exam and are not covered in most national study materials.
Master the math early. The Tennessee real estate exam includes questions on commission calculations, prorations, loan-to-value ratios, and area calculations. Set aside dedicated math practice sessions — don't leave it until the last week.
Take timed practice exams. The Tennessee exam has 120 questions within a 3.5 hours time limit. Simulate exam conditions to build stamina and identify weak topics before exam day.
Focus heavily on agency law. Agency relationships, disclosure requirements, and fiduciary duties are consistently among the most-tested topics on the TN exam. Understand the difference between seller's agent, buyer's agent, dual agent, and transaction broker in the context of Tennessee law.
Review Fair Housing thoroughly. Federal Fair Housing Act protections apply in all states, but Tennessee may have additional protected classes. Know both federal and Tennessee-specific protections cold — this topic appears on virtually every exam.
Use active recall, not passive reading. Instead of re-reading notes, quiz yourself. Use flashcards or practice questions to test retention. Research shows active recall improves long-term retention significantly compared to passive review.
Tennessee Real Estate Exam — Frequently Asked Questions
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