TREC & License Law·Tn Trec Authority

Tennessee Real Estate Salesperson — Course Curriculum

Exam: Tennessee Real Estate Salesperson (TREC / PSI) Total Questions: ~120 (80 national + 40 Tennessee-specific) Passing Score: 70% Licensing Authority: Tennessee Real Estate Commission (TREC)

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Course Structure

| Chapter | Title | Files | Focus | |---|---|---|---| | 0 | Introduction | 1 | Exam overview, how to study | | 1 | TREC and Licensing | 3 | TN-specific: TREC structure, license requirements, discipline | | 2 | Agency and Disclosure | 3 | TN-specific: agency types, RPCD, fair housing | | 3 | Real Property Characteristics | 3 | National: fixtures, legal descriptions, land use | | 4 | Ownership and Title | 2 | National: ownership forms, deeds, title insurance | | 5 | Property Value and Appraisal | 1 | National: 3 approaches to value, depreciation | | 6 | Contracts | 2 | National: CALCO elements, PSA, contingencies | | 7 | Real Estate Practice | 1 | National: antitrust, MLS, property management | | 8 | Financing and Settlement | 1 | National: loan types, RESPA, TILA | | 9 | Real Estate Math | 1 | National + TN: commission, proration, deed/mortgage tax |

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Chapter 0 — Introduction

0.1 - How to Use This Course

  • Exam format overview (120 questions, 70% to pass, PSI vendor)
  • Study priority: TN-specific chapters first, then national heavy-hitters
  • TN's three unique features: terminology, triple-agency forms, Recovery Account

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    Chapter 1 — TREC and Licensing (Tennessee-Specific)

    Exam weight: 10–14 TN questions | High priority

    1.1 - Tennessee Real Estate Commission

  • TREC composition: 9 members (7 licensed + 2 public), 5-year terms, Governor appoints
  • Two layers of law: Statute (T.C.A. 62-13) vs. Rules (Chapter 1260)
  • Recovery Account: $15,000/transaction max, $30,000/licensee max, $500,000 minimum balance
  • Claim process: court judgment → uncollectible → certified mail notice → TREC pays → license suspended

    • 1.2 - Tennessee License Requirements

  • Pre-license: 90 hours (60 basic + 30 new affiliate course)
  • Application window: 1 year after passing exam
  • License term: 2 years; 16 hours CE per cycle (3-hour Core Course mandatory)
  • Affiliate Broker upgrade to Broker: 3 years active + 90 additional hours
  • Sponsoring broker required; license must display at principal broker's office
  • Reinstatement: within 1 year = fees + CE; after 1 year = re-apply + re-test

    • 1.3 - License Maintenance and Discipline

  • Grounds for discipline: fraud, commingling, conversion, unlicensed practice, antitrust
  • Disciplinary options: denial, suspension, revocation, probation, civil penalty
  • Trust account rules: separate account required; no commingling; TREC can audit anytime
  • Advertising rules: licensed firm name required in all ads; team names must include brokerage
  • Net listings: legal in TN but strongly discouraged
  • Antitrust: Sherman Act — no rate-fixing or market allocation with competitors
  • Property management: requires license; separate PM agreement required
  • Timeshare regulation: TREC regulated; developers must register

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    Chapter 2 — Agency and Disclosure (Tennessee-Specific)

    Exam weight: 10–14 TN questions | Highest priority

    2.1 - Tennessee Agency Relationships

  • Fiduciary duties: OLD CAR (Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable Care)
  • Customer duties (non-clients): honesty, fair dealing, material facts, fund accounting
  • TN agency types:
    • - Seller agency: listing agreement required - Buyer agency: buyer representation agreement required - Consensual dual agency: ONE agent, both clients, written consent required, cannot advise on price - Designated agency: TWO agents from same firm, full fiduciary each, written disclosure - Transaction broker: ministerial only, no fiduciary
  • Disclosure timing: first substantive contact (price, terms, motivation)
  • Written agreements required for buyer and seller representation

    • 2.2 - Tennessee Property Disclosures

  • RPCD required for 1–4 unit residential sales (even "as is" transactions)
  • "As is" does NOT eliminate the seller's duty to disclose known material defects
  • Stigmatized property: no mandatory TN disclosure; cannot misrepresent
  • Lead paint: federal requirement for pre-1978 homes; 10-day inspection window
  • RPCD exemptions: court-ordered sales, transfers to heirs, between co-owners, commercial property

    • 2.3 - Tennessee Fair Housing

  • 7 federal protected classes: Race, Color, National Origin, Religion, Sex, Disability, Familial Status
  • Prohibited practices: steering, blockbusting, redlining, discriminatory advertising
  • State enforcement: Tennessee Human Rights Commission (THRC)
  • Federal enforcement: HUD (1-year filing deadline)
  • Private civil action: 2-year statute of limitations
  • Reasonable accommodation/modification: required for disabled tenants

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    Chapter 3 — Real Property Characteristics (National)

    Exam weight: 6–8 questions | Medium priority

    3.1 - Real vs Personal Property

  • Real property: land + improvements + attached items
  • Personal property (chattel): movable, unattached
  • Fixture test: MARIA (Method, Adaptability, Relationship, Intention, Agreement)
  • Trade fixtures: commercial tenant's equipment; remains personal property
  • Emblements: annual crops planted by tenant; personal property of tenant

    • 3.2 - Legal Descriptions

  • Metes and bounds: Point of Beginning, direction-distance, returns to POB; used in TN
  • Rectangular survey: principal meridian + baseline; township (6×6 mi); section (640 acres)
  • Lot and block: platted subdivisions; references recorded plat
  • Math: 1 section = 640 acres; quarter section = 160 acres; 1 acre = 43,560 sq ft

    • 3.3 - Land Use Controls and Encumbrances

  • Public controls: zoning, building codes, subdivision regulations, eminent domain, police power, escheat
  • Zoning tools: variance, special use permit, nonconforming use, spot zoning
  • Easements: appurtenant (benefits parcel) vs. in gross (benefits per