FREE Tennessee Real Estate Exam Guide 2026: Complete TREC License Prep

Tennessee Real Estate License Overview

Tennessee is one of the fastest-growing real estate markets in the United States, with Nashville, Memphis, Knoxville, and Chattanooga offering diverse opportunities for real estate professionals. The Tennessee Real Estate Commission (TREC), under the Department of Commerce and Insurance, oversees licensing and ensures professional standards across the state.

With no state income tax and strong population growth, Tennessee attracts both relocating buyers and investors, making it an excellent state for a real estate career.

Tennessee Real Estate Exam Quick Facts

Requirements Before Taking the Exam

Pre-License Education Requirements

Pre-License Course Structure (90 Hours Total)

Tennessee requires 90 hours of pre-license education divided into two courses:

60-Hour Basic Principles of Real Estate Course:

1. Real estate law fundamentals
2. Property ownership and transfer
3. Contracts and agency relationships
4. Real estate finance
5. Valuation and market analysis
6. Tennessee-specific regulations

30-Hour Course for New Affiliates:

1. Practical applications
2. TREC rules and regulations
3. Ethics and professional standards
4. Tennessee contract forms
5. Brokerage operations

Application Process

1. Complete 60-hour Basic Principles course
2. Pass school final exam
3. Apply for exam authorization from TREC
4. Complete fingerprinting and background check
5. Schedule exam with PSI
6. Pass both exam sections
7. Complete 30-hour New Affiliates course
8. Submit license application with sponsoring broker

Tennessee Exam Format

The Tennessee real estate exam consists of two separate sections that must both be passed with a score of 70% or higher.

Content Breakdown

National Portion Topics (80 Questions)

State Portion Topics (40 Questions)

Tennessee-Specific Topics to Know

TREC Authority and Disciplinary Actions

Tennessee Agency Disclosure

Tennessee requires written disclosure of agency relationships:

• Designated Agency - Broker designates agents for each party
• Disclosed Dual Agency - Requires written consent from both parties
• Buyer Agency - Agent represents buyer exclusively
• Seller Agency - Agent represents seller exclusively

Tennessee Contract Forms

Familiarize yourself with Tennessee Association of Realtors (TAR) forms:

• Purchase and Sale Agreement
• Exclusive Right to Sell Listing Agreement
• Buyer Representation Agreement
• Property Disclosure Statement
• Lead-Based Paint Disclosure

Wholesaling Regulations (2024-2025 Updates)

Tennessee enacted new regulations for real estate wholesaling:

• Written disclosure requirements
• Prohibition on certain marketing practices
• Licensing requirements for frequent wholesaling
• Consumer protection provisions

Tennessee Landlord-Tenant Act

Key provisions for the exam:

• Security deposit limits and handling
• Notice requirements for lease termination
• Landlord's duty to maintain premises
• Tenant remedies for violations
• Commercial eviction procedures (expedited process)

Tennessee Exam Pass Rates

The Tennessee real estate exam has varying pass rates by section:

Why the National Section is Harder

Study Strategy

Recommended Study Timeline

After completing the 60-hour Basic Principles course.

Study Priority by Section Weight

National Portion (Focus Areas):

1. Contracts & Agency (25-28 questions)

   • Agency relationships and duties
   • Contract elements and types
   • Offer and acceptance

2. Financing (10-12 questions)

   • Mortgage types
   • Loan calculations
   • TILA and RESPA

3. Real Estate Math (8-13 questions)

   • Commission calculations
   • Prorations
   • Area and volume
   • Loan-to-value ratios

State Portion (Focus Areas):

1. TREC Rules and Regulations

   • Licensing requirements
   • CE requirements
   • Disciplinary procedures

2. Tennessee Contract Forms

   • TAR standard forms
   • Required disclosures
   • Agency documentation

3. Tennessee-Specific Laws

   • Landlord-tenant act
   • Property disclosure requirements
   • Wholesaling regulations

Key Math Formulas

Commission Calculations:

$\text{Commission} = \text{Sales Price} \times \text{Rate}$

$\text{Agent Share} = \text{Commission} \times \text{Split \%}$

Prorations (Tennessee uses 365-day year):

$\text{Daily Rate} = \frac{\text{Annual Amount}}{365}$

$\text{Proration} = \text{Daily Rate} \times \text{Days}$

Property Tax:

$\text{Tax} = \text{Assessed Value} \times \text{Tax Rate}$

Loan-to-Value:

$\text{LTV} = \frac{\text{Loan Amount}}{\text{Property Value}}$

Capitalization Rate:

$\text{Cap Rate} = \frac{\text{NOI}}{\text{Property Value}}$

Common Mistakes to Avoid

1. Underestimating the National Portion

Many candidates focus too heavily on Tennessee-specific content:

• The national section has 80 questions vs 40 state
• Math calculations are challenging
• Agency concepts appear throughout

2. Weak Real Estate Math Skills

Math questions appear in multiple topic areas:

• Commission and split calculations
• Prorations (taxes, rent, insurance)
• Area and measurement conversions
• Investment analysis (cap rate, ROI)

3. Confusing Agency Types

Know the differences between:

• Designated Agency: Specific agents assigned
• Disclosed Dual Agency: Same broker, both parties consent
• Single Agency: One party only

4. Not Knowing TREC Rules

State-specific questions test TREC knowledge:

• Education requirements
• License renewal procedures
• Trust account requirements
• Advertising regulations

Exam Day Tips

Before the Exam

• Get adequate rest the night before
• Eat a balanced meal
• Arrive 30 minutes early to the testing center
• Bring two forms of ID (one government-issued with photo)
• Review key formulas one more time

During the Exam

• Read every question completely
• Watch for "EXCEPT" and "NOT" questions
• Show all math work on scratch paper provided
• Flag difficult questions and return later
• Manage time: ~2 min/question national, ~2 min/question state
• Use all available time to review answers

What to Bring

• Two forms of valid ID (one with photo and signature)
• Confirmation email from PSI
• Nothing else - personal items stored in locker

Calculator Policy

• Basic calculators provided at testing center
• Personal calculators not allowed
• Practice with basic calculator before exam

After Passing the Exam

Immediate Steps

1. Receive results on screen at testing center
2. Complete 30-hour New Affiliates course (if not done)
3. Find a sponsoring broker (required to practice)
4. Submit license application to TREC
5. Pay license fees ($91 for affiliate broker)
6. Receive license and begin practicing

Continuing Education Requirements

License Renewal Timeline

Tennessee Real Estate Market Outlook

Hot Tennessee Markets (2026)

Salary Expectations

Why Tennessee is Growing

• No state income tax - Attracts relocations and businesses
• Affordable housing - Compared to coastal markets
• Quality of life - Music, food, outdoor recreation
• Business-friendly - Low taxes, minimal regulations
• Population growth - Top 10 destination state

Resources

• TREC Official Website - Licensing information
• PSI Exams - Exam scheduling
• Tennessee Realtors - Industry resources
• OpenExamPrep - Free study materials and practice tests