Complete Tennessee Real Estate License Exam Guide 2026: Pass the TREC TN Exam

Tennessee's real estate market is one of the most dynamic in the United States. Nashville consistently ranks among the top metropolitan areas for population growth, job creation, and housing demand. Memphis, Knoxville, and Chattanooga each offer distinct market opportunities. For anyone looking to enter real estate in Tennessee, the path begins with the Tennessee Real Estate Commission (TREC) licensing process — and the PSI salesperson exam.

This guide covers every step of the Tennessee licensing process, from the 90-hour pre-licensing requirement through exam day and license activation.

Key Facts

Regulatory body: Tennessee Real Estate Commission (TREC)
Testing vendor: PSI Exams
Pre-licensing hours: 90 hours
Exam questions: 120 (80 national + 40 state)
Passing score: 70% on each section independently
Exam fee: $85 per attempt
License type at entry: Affiliate Broker
Application fee: $91 (Affiliate Broker)

Tennessee Real Estate Licensing Structure
The Tennessee Real Estate Commission (TREC)
Step-by-Step Licensing Roadmap
Pre-Licensing Education: The 90-Hour Requirement
PSI Exam Format and Structure
National Portion: Topic Breakdown
State Portion: Tennessee-Specific Content
Registering for the PSI Exam
Score Reporting and Retake Rules
After Passing: Activating Your Tennessee License
Tennessee Market Overview
FAQ

1. Tennessee Real Estate Licensing Structure

Tennessee uses a three-tier licensing system that is different from many states:

Tier 1: Affiliate Broker The entry-level license for all new real estate practitioners. An affiliate broker must be sponsored by and work under a licensed Tennessee principal broker. This is the license you earn by completing the 90-hour pre-licensing course and passing the PSI exam.

Tier 2: Broker After working as an affiliate broker for at least three years with an active Tennessee license, you may apply to become a licensed broker. Brokers must complete additional education and pass a broker-level exam. Brokers can operate independently or sponsor affiliate brokers.

Tier 3: Principal Broker A licensed broker who is designated as the managing broker of a real estate office. Each real estate company in Tennessee must designate at least one principal broker who is responsible for the firm's activities and supervises all affiliate brokers.

Understanding this structure matters for exam questions that test the relationship between affiliate brokers and principal brokers.

2. The Tennessee Real Estate Commission (TREC)

TREC is the state regulatory body responsible for:

Setting pre-licensing education requirements
Establishing and enforcing standards for real estate practice
Issuing and renewing licenses
Investigating complaints and imposing disciplinary action
Promulgating rules and regulations under the Tennessee Real Estate Broker License Act

TREC contact:

Website: tn.gov/commerce/regboards/trec
Tennessee Real Estate Broker License Act: Tennessee Code Annotated (TCA) Title 62, Chapter 13

The exam tests your knowledge of TREC's authority, disciplinary process, and the key provisions of Tennessee real estate law.

3. Step-by-Step Licensing Roadmap

Step 1: Complete 90 Hours of Pre-Licensing Education

Tennessee requires 90 clock hours of TREC-approved pre-licensing education:

Phase I (30 hours): Basic Principles of Real Estate
Phase II (30 hours): New Affiliate Broker Course
Phase III (30 hours): Agency Law / Tennessee Licensing Law

All three phases must be completed from TREC-approved schools. Both in-person and online formats are available.

Step 2: Receive Your Course Completion Certificates

After completing each phase, receive your completion certificate. You need certificates from all three phases before scheduling the PSI exam.

Step 3: Register for the PSI Exam

Create an account at psiexams.com, search for "Tennessee Real Estate Affiliate Broker," select your testing center and time, and pay the $85 exam fee.

Step 4: Pass Both Exam Sections

Score 70%+ on the national portion (80 questions) and 70%+ on the state portion (40 questions) independently.

Step 5: Apply for Your Affiliate Broker License

Apply through TREC's online licensing portal. The application fee is $91. You will need:

All three phase completion certificates
Your PSI exam score report
Sponsoring principal broker information
Background check authorization

Step 6: Background Check

Tennessee requires a fingerprint-based criminal background check through the Tennessee Bureau of Investigation (TBI) and the FBI. Fingerprinting is arranged through TREC's approved vendor.

Step 7: License Issuance

After TREC approves your application, your affiliate broker license is issued. The license is tied to your sponsoring principal broker and is active immediately upon issuance.

| Step | Requirement | Fee | Timeline | |------|------------|-----|----------| | Pre-licensing (Phase I–III) | 90 TREC-approved hours | $300–$700 | 4–12 weeks | | PSI exam | 120 questions, 70% each section | $85 | Immediate results | | License application | TREC online portal | $91 | After passing exam | | Background check | TBI/FBI fingerprints | ~$38–$42 | Concurrent with application | | License issuance | TREC processing | Included in application | 2–4 weeks after complete application |

4. Pre-Licensing Education: The 90-Hour Requirement

Tennessee's 90-hour requirement is divided into three distinct phases, each covering specific content areas:

Phase I: Basic Principles of Real Estate (30 hours)

Covers the foundations of real estate including property ownership, types of real estate interests, land use controls, legal descriptions, real estate finance, appraisal concepts, fair housing, and the real estate closing process. This phase is essentially national content.

Phase II: New Affiliate Broker Course (30 hours)

Focuses on the practical aspects of entering real estate practice: working with buyers and sellers, listing agreements, purchase agreements, ethical conduct, professional standards, and introduction to Tennessee agency law.

Phase III: Agency Law / Tennessee Licensing Law (30 hours)

The most important phase for exam purposes. Covers Tennessee-specific agency relationships, the Tennessee Real Estate Broker License Act, TREC rules and regulations, the Tennessee License Law, and Tennessee-specific disclosure requirements.

Important: All three phases must be completed before the PSI exam. You cannot complete phases in stages and take the exam after Phase I or II.

TREC-Approved Schools

TREC maintains a list of approved course providers on its website. Major providers include:

Tennessee Association of REALTORS® (TAR) education programs
Kaplan Real Estate Education
Real Estate Express / Colibri Real Estate
Various local real estate schools in Nashville, Memphis, Knoxville, and Chattanooga

5. PSI Exam Format and Structure

The Tennessee Real Estate Affiliate Broker exam is administered by PSI at testing centers throughout Tennessee and nationally.

Exam Format

| Feature | Details | |---------|---------| | Total questions | 120 | | National questions | 80 | | State questions | 40 | | Time allowed | 150 minutes | | Passing score | 70% per section (56/80 national; 28/40 state) | | Question format | Multiple choice (four options) | | Score delivery | Immediate at testing center | | Retake waiting period | None |

Question Design

All questions are four-option multiple choice. There is no penalty for wrong answers — unanswered questions count the same as wrong answers. Always answer every question.

Questions range from definitional (vocabulary-based) to scenario-based (apply a legal concept to a described situation). Scenario-based questions are more common and more challenging, requiring you to understand concepts deeply enough to apply them.

6. National Portion: Topic Breakdown

The 80-question national portion covers real estate principles applicable across all states. Tennessee-specific concepts appear in the state portion only.

Property Ownership (~10 questions)

Real vs. personal property, types of ownership interests (fee simple, life estate, leasehold), concurrent ownership (tenancy in common, joint tenancy, tenancy by the entirety), easements, liens, encumbrances, government land use controls.

Key Tennessee note: Tennessee is NOT a community property state (uses common law property system).

Valuation (~10 questions)

Three approaches to value (sales comparison, cost, income), market value vs. market price, appraisal process, competitive market analysis, principle of substitution, gross rent multiplier, capitalization rate.

Financing (~15 questions)

Highest question count on the national portion. Mortgage types (conventional, FHA, VA, USDA), key loan features, Truth in Lending Act, RESPA, qualifying ratios, points and fees, secondary mortgage market, Fannie Mae, Freddie Mac.

Agency (~15 questions)

Second highest question count. Types of agency relationships, fiduciary duties (COALD: Care, Obedience, Accounting, Loyalty, Disclosure), agency disclosure, listing agreements, buyer agency, dual agency.

Mandated Disclosures (~7 questions)

Federal lead paint disclosure (pre-1978 homes), ADA requirements, stigmatized property considerations, mold disclosure considerations.

Contracts (~13 questions)

Elements of a valid contract, types of contracts (bilateral/unilateral, express/implied, executory/executed), purchase agreements, option contracts, lease agreements, Statute of Frauds.

Transfer of Title (~5 questions)

Deeds (types and requirements), recording, title search, title insurance, closing process.

Practice of Real Estate (~5 questions)

Antitrust laws, federal fair housing (seven protected classes), advertising rules, MLS.

7. State Portion: Tennessee-Specific Content

The 40-question state portion tests Tennessee law exclusively. This is where Tennessee-specific study time pays off.

Tennessee Real Estate Broker License Act (~10 questions)

The foundational licensing statute. Key topics:

Requirements for each license tier (affiliate broker, broker, principal broker)
Exemptions from licensure (attorneys, court-appointed fiduciaries, etc.)
License renewal requirements (2-year cycle, 16 hours CE)
Trust account requirements
Commingling of funds prohibition

TREC Rules and Regulations (~8 questions)

TREC has broad authority to promulgate rules governing Tennessee real estate practice. Exam topics include:

TREC composition and authority
Disciplinary procedures and grounds for discipline
License revocation, suspension, and censure
Fines and penalties

Tennessee Agency Law (~8 questions)

Tennessee defines agency relationships specifically in the Tennessee Agency Law statute. Key elements:

Tennessee recognizes: seller's agent, buyer's agent, dual agent, facilitator (transaction broker), designated agent
Tennessee DOES recognize facilitator/transaction broker — unlike Massachusetts, which does not
Agency disclosure requirements: Tennessee Property Disclosure form
Written buyer agency agreements

Tennessee Residential Property Disclosure (~6 questions)

Tennessee requires sellers to complete a Residential Property Condition Disclosure form. Key points:

Required for most residential property sales (one to four units)
Seller must disclose known material defects
Exemptions: foreclosure sales, estate sales, transfers between family members, new construction with warranties
Buyers have a right to rescind based on disclosure information within a specified period

Tennessee Fair Housing (~4 questions)

Tennessee's Human Rights Act covers many of the same classes as federal law. Review which classes are covered under Tennessee law versus federal law only.

Tennessee-Specific Contract Law (~4 questions)

Tennessee purchase contracts, earnest money handling, and specific Tennessee closing customs differ from national norms.

8. Registering for the PSI Exam

Eligibility Requirements

Before registering, confirm you have completed all three phases of the 90-hour pre-licensing requirement. TREC approves your eligibility to test; PSI verifies this when you schedule.

Registration Steps

Visit psiexams.com
Create or log into your PSI candidate account
Search for "Tennessee Real Estate Affiliate Broker Salesperson"
Select testing center location in Tennessee or any PSI location nationally
Choose available date and time
Pay $85 exam fee
Receive confirmation email

Tennessee PSI Testing Locations

PSI has testing centers in Nashville, Memphis, Knoxville, Chattanooga, and other Tennessee cities. Check psiexams.com for current locations and availability.

Cancellation Policy

Cancel at least 48 hours before your scheduled exam to receive a refund or reschedule without fee. Late cancellations and no-shows forfeit the $85 fee.

9. Score Reporting and Retake Rules

Score Delivery

Scores are delivered immediately upon exam submission. You receive a printed score report from the PSI proctor showing pass/fail status for each section.

If You Pass

Your results are electronically transmitted to TREC. Proceed with the license application.

If You Fail One Section

The passing section score is banked for one year. You only need to retake the failed section within that year.

If You Fail Both Sections

You retake the complete 120-question exam. No waiting period is required between attempts.

Diagnostic Report

A failing score report includes a content area breakdown showing your performance in each topic. Use this to prioritize retake study.

10. After Passing: Activating Your Tennessee License

License Application

Submit your affiliate broker application through TREC's online portal at tn.gov/commerce/regboards/trec. Required materials:

Phase I, II, and III completion certificates
PSI score report (electronically transmitted, but reference number helps)
Sponsoring principal broker's license number and signature
Background check submission

Background Check

Tennessee requires fingerprint-based criminal background checks through TREC's approved vendor. Fingerprinting is typically completed at Identogo or similar locations. Budget approximately $38–$42 for fingerprinting fees.

Criminal history note: Tennessee reviews each applicant individually. Prior convictions may affect eligibility depending on the nature and timing of the offense. The Tennessee Nurse Aide Registry check and the TBI/FBI background check are both used.

Principal Broker Sponsorship

Your affiliate broker license is inactive until sponsored by a licensed Tennessee principal broker. The principal broker submits a sponsorship affiliation through TREC's system.

License Renewal

Tennessee affiliate broker licenses renew every two years. Renewal requires:

16 hours of TREC-approved continuing education
Renewal fee (check TREC website for current amount)
Active principal broker sponsorship

11. Tennessee Market Overview

Tennessee's real estate market has seen extraordinary growth over the past decade, driven by:

Nashville metro: One of the fastest-growing cities in America. Population has expanded significantly with corporate relocations (Amazon, Oracle, AllianceBernstein HQ). Median home prices have risen dramatically, making it a high-commission market for active agents.

Memphis: The largest city by population. More affordable than Nashville, with a strong investor market driven by single-family rental demand. Active first-time buyer market.

Knoxville: University of Tennessee presence drives student and faculty housing demand. Growing tech and healthcare employment base. More affordable than Nashville with strong quality-of-life factors attracting relocation buyers.

Chattanooga: Rapidly growing tech-friendly city with strong outdoor recreation lifestyle appeal. Business-friendly environment has attracted remote workers and corporate offices.

No state income tax: Tennessee's lack of a personal income tax is a frequently cited driver of in-migration from high-tax states (California, New York, Illinois). Real estate agents often use this in buyer conversations.

FAQ

Q: How long does it take to complete Tennessee's 90-hour pre-licensing requirement? A: At minimum, a few weeks if taking intensive online self-paced courses. More typically, 8–12 weeks for part-time students taking online courses or 3–6 months for evening in-person classes. There is no minimum time requirement per phase.

Q: Can I complete the Tennessee pre-licensing courses online? A: Yes. TREC approves online self-paced, online live, and in-person course formats. The most popular option for working adults is online self-paced, which allows completion at any schedule.

Q: Does Tennessee have reciprocity with other states? A: Tennessee has reciprocity agreements with several states. Licensees from reciprocal states may not need to complete Tennessee's 90-hour pre-licensing requirement and may only need to pass the Tennessee state portion of the exam. Check TREC's current reciprocity list at tn.gov/commerce/regboards/trec.

Q: What is an "affiliate broker" in Tennessee — is it the same as a salesperson? A: Yes. Tennessee calls the entry-level real estate license "affiliate broker" rather than "salesperson." The role is equivalent to a real estate salesperson in states that use that terminology. You are licensed to perform real estate brokerage activities but must work under a principal broker's supervision.

Q: How much does a Tennessee real estate license application cost in total? A: Budget approximately $85 (PSI exam) + $91 (license application fee) + $38–$42 (background check fingerprinting) = approximately $214–$218 in direct government/testing fees, plus $300–$700 for the pre-licensing course.

Q: Do I need to be affiliated with a principal broker before I can apply for my license? A: Yes. Your affiliate broker license application requires a sponsoring principal broker. Line up your broker affiliation before submitting your application. Many candidates begin interviewing brokers while completing their pre-licensing education.