Tennessee Real Estate Exam Pass Rate: What the Numbers Actually Tell You
If you are preparing for the Tennessee real estate exam, understanding the pass rate is more than a curiosity -- it is a strategic advantage. The pass rate tells you how difficult the exam really is, which sections trip people up, and how much preparation you actually need.
The Tennessee real estate licensing exam is administered by PSI Services on behalf of the Tennessee Real Estate Commission (TREC). Like most states, the exam is split into a national portion and a state-specific portion, and you must pass both independently.
Current Tennessee Real Estate Exam Pass Rates
Tennessee does not publish official pass rate statistics the way some state bar exams do. However, based on PSI testing data, pre-license school completion reports, and national benchmarking from ARELLO (Association of Real Estate License Law Officials), we can establish reliable estimates.
| Section | Estimated First-Time Pass Rate | Passing Threshold |
|---|---|---|
| National Portion | ~50-55% | 56 out of 80 (70%) |
| State Portion | ~65-70% | 28 out of 40 (70%) |
| Both Sections Combined | ~45-50% first attempt | Must pass each independently |
What These Numbers Mean
The national portion pass rate of 50-55% means roughly half of first-time test-takers fail that section. The state portion is somewhat easier at 65-70% because candidates who completed TREC-approved education have studied Tennessee-specific material recently.
The combined first-attempt pass rate of approximately 45-50% means that more than half of candidates do not pass on their first try. This is not because the exam is impossibly hard -- it is because most people underestimate the preparation required.
Tennessee Real Estate Exam Format
Before diving into study strategies, you need to understand exactly what you are facing.
| Component | Details |
|---|---|
| Total Questions | 120 multiple-choice |
| National Portion | 80 questions |
| State Portion | 40 questions |
| Time Limit | 4 hours total |
| Passing Score | 70% on each section (56/80 national, 28/40 state) |
| Exam Fee | $39 per attempt |
| Testing Vendor | PSI Services |
| Pre-license Education | 90 hours required |
| Minimum Age | 18 years old |
Section-by-Section Breakdown: National Portion (80 Questions)
| Topic Area | Approximate % | ~Questions |
|---|---|---|
| Property Ownership | 8% | 6-7 |
| Land Use Controls & Regulations | 5% | 4 |
| Valuation & Market Analysis | 7% | 5-6 |
| Financing | 10% | 8 |
| General Principles of Agency | 13% | 10-11 |
| Property Disclosures | 6% | 5 |
| Contracts | 17% | 13-14 |
| Leasing & Property Management | 3% | 2-3 |
| Transfer of Title | 8% | 6-7 |
| Practice of Real Estate | 13% | 10-11 |
| Real Estate Calculations | 10% | 8 |
Hardest areas: Contracts (17%), Agency (13%), and Real Estate Calculations (10%) account for 40% of the national portion. These three topics are where most candidates lose points.
Section-by-Section Breakdown: State Portion (40 Questions)
| Topic Area | Approximate % | ~Questions |
|---|---|---|
| TREC Rules & Regulations | 25% | 10 |
| Licensing Requirements | 20% | 8 |
| Agency Relationships (TN Law) | 20% | 8 |
| Tennessee Property Disclosure | 15% | 6 |
| Contracts & Closing (TN Practice) | 20% | 8 |
Top 5 Reasons Candidates Fail the Tennessee Real Estate Exam
Understanding why people fail helps you avoid the same mistakes.
1. Underestimating Real Estate Math (10% of National)
Real estate math questions involve commission splits, prorations, loan-to-value ratios, capitalization rates, and property tax calculations. Many candidates skip math practice because it feels uncomfortable, but 8 questions on the national portion are pure calculations. Missing most of these almost guarantees failure.
Example calculation you must master: A property sells for $285,000. The total commission is 6%, split 60/40 between listing and selling brokers. The selling agent gets 50% of their broker's share. What does the selling agent earn?
- Total commission: $285,000 x 0.06 = $17,100
- Selling broker share: $17,100 x 0.40 = $6,840
- Selling agent share: $6,840 x 0.50 = $3,420
2. Confusing Agency Relationships
Tennessee follows the Tennessee Real Estate Broker License Act, which defines specific agency relationships. Candidates confuse:
- Designated agency vs. dual agency
- When written consent is required
- The duties owed to customers vs. clients
- TREC disclosure requirements at first substantive contact
3. Not Learning TREC-Specific Rules
The state portion tests Tennessee-specific regulations that are NOT covered in national prep materials. Key TREC rules include:
- License renewal every 2 years (16 hours CE required)
- Errors & Omissions insurance requirement
- Trust account handling procedures
- TREC complaint and disciplinary process
- Tennessee Residential Property Disclosure Act
4. Poor Time Management During the Exam
With 120 questions in 4 hours, you have 2 minutes per question. That sounds generous, but math problems and complex scenario questions eat up time. Candidates who spend too long on difficult questions early often rush through easier questions at the end.
5. Relying Only on Pre-License Course Materials
The 90-hour pre-license course teaches you the material, but it does not prepare you for the exam format. PSI exam questions are designed to test application, not just memorization. You need dedicated exam prep with practice questions in the PSI format.
Study Strategy: How to Beat the Tennessee Average
The candidates who pass on their first attempt share common preparation habits. Here is a proven 4-6 week study plan.
Recommended Study Timeline
| Week | Focus Area | Hours |
|---|---|---|
| Week 1 | Contracts, Agency, Property Ownership | 12-15 |
| Week 2 | Financing, Valuation, Transfer of Title | 12-15 |
| Week 3 | TREC Rules, TN Disclosure, State-Specific Law | 12-15 |
| Week 4 | Real Estate Math (all calculation types) | 10-12 |
| Week 5 | Full-length practice exams + weak area review | 10-12 |
| Week 6 | Final review, timed practice tests, exam day prep | 8-10 |
| Total | 64-79 hours |
The Practice Test Strategy That Works
Practice tests are the single most effective study tool, but only if you use them correctly:
- Take your first practice test cold -- before any studying -- to establish a baseline
- Review every wrong answer and write down WHY you got it wrong (not just the correct answer)
- Track your scores by topic area to identify weak sections
- Aim for 85%+ on practice tests before scheduling your real exam (the 15% buffer accounts for exam-day nerves)
- Take at least 3 full-length timed practice tests in the final two weeks
- Simulate exam conditions -- no phone, no notes, strict time limit
Study Tips from Successful Candidates
- Flashcards for vocabulary -- agency terms, contract clauses, TREC terminology
- Teach it to explain it -- if you cannot explain a concept in simple terms, you do not truly understand it
- Focus on "why" not just "what" -- the exam tests application, so understand the reasoning behind rules
- Study TREC rules separately -- do not mix national and state study sessions
- Use AI to explain confusing topics -- when you hit a concept you cannot grasp, get an instant explanation
Start Your FREE Tennessee Real Estate Exam Prep
The Tennessee Real Estate Market: Why Passing Is Worth It
Tennessee is one of the fastest-growing real estate markets in the country, and getting licensed here opens significant earning potential.
Why Tennessee Is a Great State for Real Estate
| Factor | Details |
|---|---|
| No State Income Tax | More take-home pay than most states |
| Nashville Growth | Population grew 14% since 2020 |
| Median Home Price | ~$365,000 statewide (higher in Nashville metro) |
| New Agent Salary Range | $35,000 - $55,000 first year |
| Experienced Agent Income | $65,000 - $120,000+ (top agents earn $200K+) |
| Market Demand | Strong relocation market from CA, NY, IL |
Key Tennessee Markets
- Nashville-Davidson -- Live music, healthcare industry, massive population growth
- Memphis -- Affordable market, logistics hub (FedEx HQ), strong rental demand
- Knoxville -- University of Tennessee, Smoky Mountains tourism, growing tech sector
- Chattanooga -- Gigabit internet city, outdoor recreation, young professional influx
- Franklin/Williamson County -- Luxury market, top schools, high average commissions
The combination of no state income tax, a booming housing market, and strong population growth makes Tennessee one of the best states to launch a real estate career in 2026.
TREC Licensing Requirements: Quick Reference
| Requirement | Details |
|---|---|
| Minimum Age | 18 years |
| Pre-License Education | 90 hours from TREC-approved school |
| Exam | PSI national + state portions |
| Passing Score | 70% on each section |
| Background Check | Required (fingerprinting) |
| Sponsoring Broker | Required before license activation |
| License Fee | $83 initial application |
| Renewal | Every 2 years |
| Continuing Education | 16 hours per renewal cycle |
| E&O Insurance | Required for all licensees |
What to Do If You Fail
If you do not pass on your first attempt, you are not alone -- more than half of first-time candidates are in the same position. Here is your plan:
- Review your score report -- PSI provides a breakdown showing which topics you were weak in
- Wait at least 24 hours before rescheduling (required by PSI)
- Focus study on failed topic areas -- do not re-study everything equally
- Take 2-3 additional practice exams targeting your weak sections
- Reschedule within 2 weeks while the material is still fresh
You can retake the exam as many times as needed. There is no limit, but each attempt costs $39.
Start Studying Today
The difference between the ~50% who fail and the ~50% who pass is not intelligence -- it is preparation. With 60-80 hours of focused study and a strategic approach to practice testing, you can absolutely pass the Tennessee real estate exam on your first attempt.