National: Ownership & Land Use
15%of exam
Estates & InterestsOwnership FormsLand Use ControlsLand Descriptions
National: Contracts & Agency
32%of exam
National: Finance & Valuation
18%of exam
National: Disclosures, Practice & Calc
35%of exam
TN: Commission & Licensing
20%of exam
TREC PowersLicensing RequirementsExam RetakesEducation Hours
TN: Advertising & Broker Relations
30%of exam
Advertising RulesBroker RelationsCompensation RulesAffiliation Changes
TN: Records & Escrow Compliance
20%of exam
RecordkeepingTrust AccountsEscrow FundsDocument Retention
TN: Agency, Discipline & Practice
30%of exam
Agency DisclosureDiscipline ProcessConsumer ProtectionSpecial Practice Areas
Quick Facts
- Exam
- TN Affiliate Broker
- Vendor
- PSI
- Questions
- 120 (80 national + 40 state)
- Time
- 240 min + 15 tutorial
- Pass
- 70% each portion
- Fee
- $63 PSI exam fee
- Prelicense
- 90 hours total
- Blueprint
- PSI bulletin 7/1/2025
Joint Tenancy vs Tenancy in Common
Joint tenancy
- Right of survivorship
- Equal shares required
Tenancy in common
- No survivorship
- Unequal shares allowed
Survivorship vs no survivorship
Estates & Ownership Forms
- Fee simple
- Full ownership rights
- Life estate
- Ends at death
- Leasehold
- Tenant possessory interest
- Easement
- Right to use land
- Joint tenancy
- Equal shares, survivorship
Land Use & Descriptions
- Zoning
- Government use regulation
- Eminent domain
- Forced taking, compensation
- Escheat
- Property reverts to state
- Metes and bounds
- Boundary description method
OLDCAR Fiduciary Duties
Obedience Loyalty Disclosure Confidentiality Accounting Reasonable care
Obedience: follow instructionsLoyalty: client firstDisclosure: material factsAccounting: client funds
Client vs Customer
Client
- Signed agency agreement
- Fiduciary duties owed
Customer
- No agreement signed
- Honesty and fairness only
Represented vs unrepresented
Agency Type Picker
- Represent only seller→Seller's agent
- Represent only buyer→Buyer's agent
- Same firm, both sides→Designated agency
- One licensee, both sides→Dual agency(Written consent required)
- No party represented→Transaction broker
Contract Essentials
- Offer
- Definite proposal terms
- Acceptance
- Mirrors the offer
- Consideration
- Bargained-for exchange
- Capacity
- Legal ability to contract
- Statute of Frauds
- Requires written contract
Contract Status Types
- Bilateral
- Both parties promise
- Unilateral
- One party promises
- Void
- No legal effect
- Option contract
- Right to purchase later
Agency Relationships
- Seller's agent
- Represents seller only
- Buyer's agent
- Represents buyer only
- Dual agent
- Represents both parties
- Designated agency
- Two agents, same firm
- Subagent
- Works for listing broker
Fiduciary Duties
- Obedience
- Follow lawful instructions
- Loyalty
- Client's interest first
- Disclosure
- Reveal material facts
- Accounting
- Handle client funds properly
CMA vs Appraisal
CMA
- Agent-prepared estimate
- Marketing tool
- Not legally binding
Appraisal
- Licensed appraiser required
- Lender required for loans
- Legal opinion of value
Agent estimate vs licensed opinion
Loan Type Picker
- Military-eligible buyer→VA loan(No down payment)
- Rural, low-income buyer→USDA loan
- Low down payment needed→FHA loan(Requires mortgage insurance)
- Strong credit, 20% down→Conventional loan
- Rate changes over term→ARM loan
Loan Types
- Conventional
- Non-government loan
- FHA
- Government-insured, low down
- VA
- Veterans, no down payment
- USDA
- Rural, low income
- ARM
- Adjustable interest rate
Lending Laws & Value
- TILA
- Truth in lending disclosure
- RESPA
- Settlement cost disclosure
- Sales comparison
- Compares similar properties
- Cost approach
- Rebuild cost minus depreciation
Deed Warranty Ladder
General warrants most; special less; quitclaim none
General: full historySpecial: grantor's time onlyQuitclaim: no promises
General Warranty vs Quitclaim Deed
General warranty
- Full title guarantee
- Covers all history
- Most buyer protection
Quitclaim
- No guarantees given
- Transfers only interest held
Guarantee vs no guarantee
Deeds & Title Transfer
- General warranty deed
- Full title guarantee
- Quitclaim deed
- No guarantees given
- Title insurance
- Protects against defects
- Recording
- Provides public notice
Disclosures & Fair Housing
- Material fact
- Must be disclosed
- Lead paint
- Pre-1978 disclosure required
- Protected classes
- Fair Housing Act groups
- Steering
- Directing by protected class
- ADA
- Disability access requirements
Property Management
- Gross lease
- Landlord pays expenses
- Net lease
- Tenant pays expenses
- Percentage lease
- Rent plus sales percent
- Security deposit
- Held for damages
Real Estate Calculations
- Commission split
- Divided by agreement
- Proration
- Splits costs by date
- LTV
- Loan divided by value
- PITI
- Principal interest taxes insurance
- Transfer tax
- Tax on deed recording
TN Education Path
60 before exam, 30 before license, 16 to renew
60-hr: Basic Principles30-hr: New Affiliates16-hr: CE renewal2-yr: renewal cycle
Affiliate Broker vs Principal Broker
Affiliate broker
- Entry-level license
- Must be supervised
Principal broker
- Supervises affiliate brokers
- Holds trust account
Supervised vs supervising
TN Licensing Path Picker
- Before exam eligibility→60-hr Basic Principles
- After passing both portions→30-hr New Affiliates
- Ready to activate license→Principal broker affiliation
- Renewal every two years→16 CE hours
- No broker affiliation→Cannot practice legally
TREC & Licensing Path
- TREC
- State licensing board
- PSI
- TREC's exam vendor
- Affiliate broker
- Entry-level license
- Principal broker
- Supervises affiliate brokers
- 90 hours
- Total pre-license education
- E&O insurance
- Required for licensure
- Retake
- Valid 1 year or 2 tries
- 30-day wait
- After second failed attempt
Portion Pass Math
56 of 80 national; 28 of 40 state
70% each portion80 national questions40 state questionsBoth must pass
Advertising & Broker Relations
- Broker name
- Required in all ads
- Team name
- Not the brokerage name
- Blind ads
- Prohibited, no broker named
- Compensation
- Paid through firm only
- Change of affiliation
- Must notify TREC
Records & Escrow Compliance
- Record retention
- 3 years after transaction
- Transaction file
- Keep all offers, copies
- Commission access
- Records within 24 hours
- Commingling
- Never mix trust funds
- Deposit timing
- Prompt deposit of funds
Dual Agency vs Designated Agency
Dual agency
- One licensee, both parties
- Written consent required
Designated agency
- Two licensees, same firm
- Separate representation
One agent vs two agents
TN Disclosure Timing Picker
- First contact with party→Disclose agency status
- Before contract signing→Written confirmation required
- Both parties, same firm→Offer designated agency
- Representing both parties→Get written dual consent
TN Agency & Discipline
- First substantive contact
- Disclose agency status
- Written confirmation
- Before contract execution
- Designated agency
- Two TN licensees allowed
- Dual agency
- Requires written consent
- TREC complaints
- Trigger investigation, hearing
- Improper listing agreements
- Grounds for discipline
Common Traps
CMA ≠ Appraisal
Agent opinion only ≠ Licensed appraiser required
Client ≠ Customer
Client gets fiduciary duties ≠ Customer gets honesty only
Affiliate ≠ Principal Broker
Affiliate must be supervised ≠ Principal holds trust account
Dual ≠ Designated Agency
Dual is one licensee ≠ Designated is two licensees
Combined Average ≠ Each Portion
TN requires 70% each ≠ No averaging allowed ever
Earnest Money ≠ Broker Funds
Earnest money is client funds ≠ Never commingle with operating funds
Last Minute
- 1.120 questions: 80 national, 40 state
- 2.70% pass required, each portion
- 3.56 correct national, 28 state
- 4.90 total pre-license hours required
- 5.60 hours before exam eligibility
- 6.30 hours before license issued
- 7.Affiliate brokers need principal broker
- 8.Dual agency needs written consent
- 9.Disclose agency at first contact
- 10.16 CE hours every 2 years
- 11.Never commingle escrow trust funds
- 12.CMA is not an appraisal
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