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Exam Review

Key Facts: TN RE Broker Exam

75%

Passing Score (Each Portion)

PSI / TREC

3 yrs

Affiliate Broker Experience Required

TREC

120 hrs

Total Education (90 + 30)

TREC

30 hrs

Broker-Specific Education

TREC

$63

Exam Fee

PSI

16 hrs

Renewal CE Every 2 Years

TREC

Tennessee requires broker applicants to have been actively licensed for at least 36 months (24 months with a bachelor's degree majoring in real estate) and to complete 120 classroom hours of approved education, including a 30-hour Office/Broker Management course. The PSI broker exam has a 75-item national portion (80 points, 150 minutes) and a 50-item state portion (90 minutes), and candidates must score 75% on each. Tennessee uniquely calls entry-level agents 'affiliate brokers' — the broker upgrade requires a separate exam covering brokerage operations, trust accounts, supervision duties, and TN broker-specific statutes.

Sample TN RE Broker Practice Questions

Try these sample questions to review concepts for the TN RE Broker exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1A Tennessee principal broker must deposit earnest money into the trust account within what time frame?
A.24 hours of receipt
B.3 business days of receipt
C.5 business days of receipt
D.7 calendar days of receipt
Explanation: Tennessee requires principal brokers to deposit earnest money into the trust account within 3 business days of receipt. This ensures client funds are properly safeguarded and not held in the broker's personal possession. Failure to deposit timely is a TREC violation.
2Under Tennessee law, what is the minimum experience requirement to upgrade from affiliate broker to broker?
A.1 year as an active affiliate broker
B.2 years as an active affiliate broker
C.3 years as an active affiliate broker
D.5 years as an active affiliate broker
Explanation: Tennessee requires at least 3 years of active experience as an affiliate broker before qualifying to upgrade to a broker license. This experience must be under the supervision of a principal broker. The candidate must also complete 30 additional hours of broker-specific education.
3A Tennessee principal broker discovers that an affiliate broker collected a $5,000 earnest money check and placed it in the affiliate's personal desk drawer for two weeks. What violation has occurred?
A.Conversion of trust funds
B.Commingling of trust funds
C.Failure to timely deposit trust funds
D.Misrepresentation to the seller
Explanation: This is a failure to timely deposit trust funds. Tennessee requires earnest money to be deposited into the trust account within 3 business days. Holding the check in a desk drawer for two weeks is a serious violation. Commingling would involve mixing client and personal funds in one account, while conversion involves using client funds for personal purposes.
4How many total hours of pre-license education does Tennessee require for a broker license?
A.90 hours
B.120 hours
C.135 hours
D.150 hours
Explanation: Tennessee requires 120 total hours of pre-license education for a broker: 90 hours for the affiliate broker level (60-hour Basic Principles + 30-hour Course for New Affiliates) plus 30 additional hours of broker-specific coursework covering brokerage management and Tennessee broker law.
5What is the primary Tennessee statute governing real estate broker licensing?
A.Tennessee Commercial Real Estate Act
B.Tennessee Real Estate Broker License Act of 1973
C.Tennessee Property Transfer Act
D.Tennessee Real Estate Commission Act of 1985
Explanation: The Tennessee Real Estate Broker License Act of 1973 is the primary statute governing the licensing and regulation of real estate brokers and affiliate brokers in Tennessee. It establishes TREC's authority, defines licensing requirements, sets standards of conduct, and outlines disciplinary procedures.
6A principal broker in Tennessee is opening a branch office. Which of the following is required?
A.The branch office must be within 50 miles of the main office
B.A separate trust account must be established for each branch
C.TREC must be notified and the branch must display the principal broker's name
D.A licensed broker must be physically present at the branch at all times
Explanation: Tennessee requires principal brokers to notify TREC when opening a branch office and to prominently display the principal broker's name at the branch location. There is no distance limitation, no requirement for a separate trust account per branch, and while supervision is required, physical presence at all times is not mandated.
7In Tennessee, what is the difference between commingling and conversion of trust funds?
A.Commingling is mixing client and personal funds; conversion is using client funds for personal benefit
B.Commingling is using client funds for personal benefit; conversion is mixing client and personal funds
C.Both terms mean the same thing under Tennessee law
D.Commingling applies only to cash; conversion applies only to checks
Explanation: Commingling is the improper mixing of client trust funds with the broker's personal or business operating funds. Conversion is the unauthorized use of client trust funds for the broker's personal benefit. Both are serious violations under Tennessee law, but conversion is generally considered more egregious and may result in criminal charges in addition to license revocation.
8A Tennessee broker is supervising 15 affiliate brokers. One affiliate fails to provide the required agency disclosure to a buyer before showing properties. Who is liable?
A.Only the affiliate broker who failed to disclose
B.Only the principal broker for failure to supervise
C.Both the affiliate broker and the principal broker
D.Neither, because agency disclosure is voluntary in Tennessee
Explanation: Both the affiliate broker and the principal broker are subject to TREC discipline. The affiliate broker violated the disclosure requirement directly, and the principal broker has supervisory liability for failing to ensure compliance. Tennessee requires agency disclosure at first substantial contact, and brokers must train and monitor affiliate brokers on disclosure requirements.
9Tennessee uses which security instrument for real estate financing?
A.Mortgage only
B.Deed of trust only
C.Both mortgage and deed of trust, but deed of trust is more common
D.Land contract exclusively
Explanation: Tennessee recognizes both mortgages and deeds of trust as security instruments, but deeds of trust are far more common. A deed of trust involves three parties: the borrower (trustor), the lender (beneficiary), and a neutral trustee who holds title. This allows for non-judicial foreclosure, which is faster and less expensive than judicial foreclosure required with mortgages.
10What is the Tennessee transfer tax (deed tax) rate on real estate conveyances?
A.$0.25 per $100 of consideration
B.$0.37 per $100 of consideration
C.$0.50 per $100 of consideration
D.$1.00 per $100 of consideration
Explanation: Tennessee imposes a transfer tax (commonly called deed tax) of $0.37 per $100 of the consideration or value of the property transferred. This tax is typically paid by the seller at closing and is collected by the county register's office when recording the deed.

About the TN RE Broker Exam

The Tennessee real estate broker exam is a separate PSI-administered exam for licensed affiliate brokers upgrading to a broker license. It covers national real estate fundamentals plus Tennessee-specific broker law, including brokerage management, trust account handling, TREC broker supervision duties, and the Tennessee Real Estate Broker License Act of 1973.

Exam sponsor: TREC / PSI. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

125 questions

Time Limit

4 hours total

Passing Score

75% on each portion (60 of 80 national points, 38 of 50 state points)

Exam / Certification Fees

$63

Exam sponsor website

Reported exam pass rate: 2025: 61.95% national, 80.43% state (first-time and repeat examinees). TREC's 2025 PSI report: 412 of 665 passed the broker national portion and 596 of 741 passed the state portion (first-time and repeat examinees combined) This describes exam candidates, not OpenExamPrep users or results from using our resources. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

19% of national

National portion — Contracts

General contract law, purchase and lease contracts, contingencies, addenda, remedies, and handling multiple offers and counteroffers

13% of national

National portion — Agency

Creating agency, listing and buyer-brokerage contracts, transaction brokers and facilitators, powers of attorney, fiduciary duties, and agency disclosures

12% of national

National portion — Practice of Real Estate

Federal fair housing and ADA, antitrust, Do-Not-Call, social media advertising, handling funds of others, and broker-only supervisory responsibilities

10% of national

National portion — Property Ownership

Real vs. personal property, land characteristics and legal descriptions, encumbrances, and forms of ownership

9% of national

National portion — Financing

Loan terminology, underwriting, loan types including FHA/VA/USDA and reverse, RESPA, Regulation Z, TRID, and ECOA

8% of national

National portion — Valuation

Appraisals and unauthorized appraisal practice, the three approaches to value, CMA, BPO, and automated valuation models

7% of national

National portion — Property Disclosures

Seller property condition disclosure, conditions warranting inspection, environmental and governmental disclosures, and material defects

6% of national

National portion — Transfer of Title

Types of deeds, title insurance and searches, marketable and insurable title, the closing process, home warranties, and foreclosure, short sale, and probate transfers

6% of national

National portion — Real Estate Calculations

Seller net proceeds, buyer funds at closing, prorations, transfer fees, PITI, equity, cap rate, LTV, and discount points

5% of national

National portion — Land Use Controls

Government rights in land, taxation and eminent domain, public land use controls, and private controls including CC&Rs

5% of national

National portion — Property Management

Tenant procurement and qualification, fair housing in management, rent-setting analysis, and broker-only duties for maintenance, trust funds, and management contracts

7 of 50 state items

TN state portion — Advertising and Marketing

Owner/agent advertising, "For Sale" signs, brokerage company and team advertising, internet and social media advertising, information required in advertised listings, and gifts and prizes

7 of 50 state items

TN state portion — Handling of Trust/Escrow Funds

Permissible disbursements, general trust/escrow account requirements, commingling and improper use of funds, depository and account requirements, interest and non-liquid earnest money, and deposit time requirements

7 of 50 state items

TN state portion — Agency and Disclosure Issues

General agency duties and creating agency, disclosure of agency relationships, material facts and misrepresentation, agent's interest, handling of offers, designated agents, facilitators, and dual agency

6 of 50 state items

TN state portion — Duties and Powers of Real Estate Commission

Purpose of the Commission, persons and disputes outside its jurisdiction, complaints, notifications and hearings, and disciplinary actions

6 of 50 state items

TN state portion — Broker/Affiliate Relationships

How compensation may be paid, permitted affiliations, the broker's supervisory responsibility, change of affiliation, and ownership of affiliates' listings

6 of 50 state items

TN state portion — Handling of Documents and Record Keeping

Responsibility for keeping records, how long to keep them, what must be kept, handling offers and other transaction documents, and Commission access to records

5 of 50 state items

TN state portion — Licensing Requirements

Licensing examinations, education, other qualifications, changes of status, name or address, firm licenses and license display, renewal, and errors and omissions insurance

3 of 50 state items

TN state portion — Other Improper Activities and Consumer Protection

Improper listing agreements, discrimination, and other misconduct

3 of 50 state items

TN state portion — Special Areas of Practice

Timeshare, property management, and commercial/industrial real estate

Preparing for the TN RE Broker Exam

What You Need to Know

  • Passing score: 75% on each portion (60 of 80 national points, 38 of 50 state points)
  • Exam length: 125 questions
  • Time limit: 4 hours total
  • Exam / certification fees: $63 Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

TN RE Broker: Suggested Study Strategy

1Master trust account rules: deposit timing, reconciliation procedures, commingling vs conversion penalties, and TREC audit preparation
2Understand the affiliate broker to broker upgrade path: 3 years experience, 30 additional hours, separate exam
3Study broker supervision duties: oversight of affiliate brokers, advertising review, transaction file maintenance
4Know the Tennessee Real Estate Broker License Act of 1973 and TREC enforcement powers
5Practice broker-level scenarios involving office management, branch offices, and independent contractor agreements

Frequently Asked Questions

What are the requirements to take the Tennessee broker exam?

You must have held an active real estate license for at least 36 months (24 months if you hold a bachelor's degree majoring in real estate) and completed 120 classroom hours of approved education, including a 30-hour Office/Broker Management course. Submit the Broker Examination Application to TREC; approval takes about four weeks and is required before you schedule with PSI. Fingerprints are needed only if you are not currently an active Tennessee affiliate.

How is the TN broker exam structured?

The PSI broker exam has two portions: a national portion of 75 items worth 80 points (150 minutes) and a Tennessee state portion of 50 items (90 minutes), plus 5 to 10 unscored experimental items. You must score 75% on each portion: 60 of 80 national points and 38 of 50 state points. A passed portion stays valid for two retakes of the failed portion or one year, whichever comes first.

What is the difference between an affiliate broker and a broker in Tennessee?

Tennessee calls entry-level licensees 'affiliate brokers' (equivalent to salesperson in other states). They must work under a principal broker. A broker license upgrade requires 3 years of affiliate experience, an additional 30 hours of broker education, and passing the separate broker exam. Brokers can operate independently and supervise affiliate brokers.

What are a TN principal broker's trust account duties?

Under TREC Rule 1260-02-.09, each principal broker must keep a separate escrow or trustee account for trust money, and affiliated brokers must pay trust money over to the principal broker immediately. Trust money is deposited promptly upon acceptance of the offer unless the offer sets a deposit date, lease-related trust money goes in a separate account, and commingling within firm accounts is prohibited. Absent a compelling reason, earnest money must be disbursed, interpleaded or turned over to an attorney to interplead within 21 calendar days of a written disbursement request.