1.2 Tennessee License Requirements
Key Takeaways
Affiliate broker applicants must be at least 18, hold a high school diploma or an approved high school equivalency credential, and be of good moral character
Pre-license education is 90 hours: 60 hours of real estate principles/fundamentals (before the exam) plus a 30-hour Course for New Affiliates (completed before the license is issued)
The PSI exam has 120 scored questions (80 national + 40 state); you need 70% on EACH portion (56/80 and 28/40)
Time is 2 hours 40 minutes for the national portion and 1 hour 20 minutes for the state portion; the exam fee is $63 total ($37 national + $26 state)
An affiliate broker must work under a sponsoring principal broker and carry E&O insurance; you must apply for the license within one year of passing the exam
Tennessee uses the term affiliate broker for what most states call a salesperson. An affiliate broker is the entry-level license and must always work under a principal broker.
Tennessee License Types
| License | Role |
|---|---|
| Affiliate broker | Entry level; lists, shows, and negotiates only under a principal broker's supervision |
| Broker | Has met experience and education to hold a broker license; may be a principal or an associate broker |
| Principal broker | The broker who manages a firm, supervises affiliates, and is responsible for the escrow account |
| Firm | The licensed entity (company); must have a principal broker |
Key distinction: Only a principal broker may hold and disburse escrow funds and supervise affiliate brokers. An affiliate broker who receives earnest money must turn it over to the principal broker for deposit.
Affiliate Broker Eligibility (T.C.A. 62-13-303)
- Be at least 18 years of age
- Hold a high school diploma or a high school equivalency credential approved by the state board of education (T.C.A. § 62-13-303(a)(2))
- Be of good moral character (criminal history is reviewed; certain offenses can disqualify)
- Not have had a real estate license revoked in any state within the disqualifying period
Pre-License Education: 90 Hours (Two Courses)
The single most-tested licensing fact is the 90-hour education requirement and when each course is due.
| Course | Hours | Timing |
|---|---|---|
| Real estate principles/fundamentals | 60 | Must be completed before sitting for the exam |
| Course for New Affiliates | 30 | Must be completed before the license is issued (certificate submitted with the application) |
| Total | 90 |
The 60 hours of real estate principles/fundamentals are the prerequisite to qualify for the PSI exam. Because the 30-hour Course for New Affiliates must be finished before the license is issued, candidates typically pass the exam first and then complete it.
Exam trap: A candidate may pass the PSI exam without the 30-hour course finished, but TREC will not issue the license until the 30-hour completion certificate is filed with the application. The 60-hour course is the exam prerequisite; the 30-hour course is the licensure prerequisite.
The Licensing Examination (PSI)
Tennessee's salesperson/affiliate broker exam is administered by PSI at testing centers and online with remote proctoring.
| Detail | Value |
|---|---|
| Total questions | 120 (80 national + 40 state) |
| Format | Multiple choice |
| National time limit | 2 hours 40 minutes (160 minutes) |
| State time limit | 1 hour 20 minutes (80 minutes) |
| Passing score | 70% on EACH portion (56/80 national; 28/40 state) |
| Exam fee | $63 total ($37 national + $26 state) |
| Vendor | PSI |
Exam fact: On the affiliate broker exam, all 120 questions are scored (one point each) - there are no unscored pretest items to ignore. The two portions are scored independently, so you cannot offset a weak state score with a strong national score; you must pass each.
Retake Rules
You may retake a failed portion, but you cannot reschedule on the same day. After the second failed attempt, you must wait 30 days between subsequent attempts. Confirm current fees and scheduling in the PSI Candidate Information Bulletin.
From Passing to Practicing
Passing the exam does not make you a licensee. You must:
- Pass both portions of the PSI exam.
- Complete the 30-hour Course for New Affiliates.
- Find a sponsoring principal broker - an affiliate broker cannot be licensed in active status without one.
- Obtain errors and omissions (E&O) insurance, which Tennessee requires for active licensees.
- Submit the application (with the 30-hour certificate) and pay the fee within one year of passing the exam, or the exam results expire and you must retest.
Warning: If you do not complete all post-exam steps and apply within one year of passing, your passing scores expire and you must retake the exam. The initial affiliate broker application fee is $91.
New Affiliate Broker Supervision
A newly licensed affiliate broker works closely with the principal broker during the first license period. The principal broker is responsible for supervising the new affiliate's transactions, advertising, and handling of funds. This is why earnest money flows through the principal broker, not the new affiliate.
Becoming a Broker (Upgrade)
To upgrade from affiliate broker to broker, an applicant must have 36 months of active experience as a licensed affiliate broker (24 months with a bachelor's degree in real estate, or if first licensed on or before May 12, 1988) and complete 120 total hours of approved education, which must include a 30-hour Office/Broker Management course. The broker exam covers more advanced supervisory and management material and is scored at 75% per portion (60 of 80 national points, 38 of 50 state).
| Requirement | Affiliate Broker | Broker |
|---|---|---|
| Minimum experience | None | 36 months active as affiliate broker (24 in the cases above) |
| Total education | 90 hours | 120 hours (incl. 30-hour Office/Broker Management) |
| Passing score | 70% each portion | 75% each portion |
| Can supervise others | No | Yes (as principal broker) |
On the exam, treat the licensing sequence as a checklist with a fixed order: meet eligibility, finish the 60-hour course, pass both PSI portions, finish the 30-hour course, secure a sponsoring principal broker, obtain E&O insurance, then apply within one year. Distractor answers usually scramble that order or attach the wrong number to a step.
What is the correct breakdown of Tennessee's 90-hour affiliate broker pre-license education?
60 hours of principles/fundamentals before the exam plus 30-hour Course for New Affiliates before the license is issued
90 hours of principles/fundamentals taken before the exam
30 hours of principles/fundamentals plus a 60-hour management course
Two 45-hour courses, both due before the exam
How is the Tennessee affiliate broker exam scored?
A single combined score of 70%
70% on each of the national and state portions, scored separately
75% national and 70% state
Pass/fail based only on the state portion
How long do you have to apply for your license after passing the Tennessee exam before scores expire?
30 days
90 days
1 year
6 months
Which task may an affiliate broker NOT perform on his or her own authority?
Show a listed property to a buyer
Advertise a listing with the firm's approval
Negotiate an offer under broker supervision
Hold and disburse earnest money from a firm escrow account
Sections you finish are checked off in the contents.