Advertising and Marketing
Seven state items, the joint-largest area, come from one long rule: Tenn. Comp. R. and Regs. 1260-02-.12, together with the gifts and prizes rule and the statutory ban on cash inducements.
What Counts as Advertising, and Whose Name Goes On It
Rule 1260-02-.12(1) reaches all advertising that promotes a licensee or the sale or lease of real property, in any medium, and names signs, flyers, letterheads, e-mail signatures, websites, social media, and streamed audio or video as examples; it excludes promotional items such as hats, pens, notepads, name tags, business cards, and charity sponsorships. Rule 1260-02-.12(3)(b) requires all advertising to be under the direct supervision of the principal broker and to list the firm name and firm telephone number as on file with the Commission, with the firm name in letters the same size or larger than a licensee's or team's name. Subparagraph (c) requires an individual licensee to be named as licensed. Tenn. Code Ann. 62-13-310(b) carries the same size rule for signs.
Signs, Other People's Listings, and Blind Advertising
Rule 1260-02-.12(3)(a) forbids advertising in a manner indicating that the licensee is not engaged in the real estate business. Subparagraph (d) forbids posting a sign advertising property for sale, purchase, exchange, rent, or lease without written authorization from the owner or the owner's agent, and subparagraph (e) forbids advertising property listed by another licensee without written authorization from the listing agent or listing broker.
Teams, Franchises, Websites, and Social Media
Rule 1260-02-.12(3)(f) defines false, misleading, or deceptive advertising to include using only a franchise name without the firm name; a team using terms such as Realty, Company, Corporation, LLC, Inc., or Associates that suggest brokerage services independent of the firm; and a webpage linking to an unlicensed entity that appears to be doing licensed work. Rule 1260-02-.12(4) requires a licensee advertising under a franchise trade name to show his name, firm name, and firm telephone number as registered with the Commission adjacent to any specific property advertised. Rule 1260-02-.12(5) requires the firm name and telephone number on each page of a website, a statement on any page carrying outside-database listings that some or all may not belong to the firm, and current, accurate first generation listing information. Rule 1260-02-.12(6) relaxes the placement requirement for social media to no more than one click away from the viewable page.
Gifts, Prizes, and Cash
Tenn. Code Ann. 62-13-302(b) forbids a licensee to give or pay cash rebates, cash gifts, or cash prizes in conjunction with any real estate transaction, and lets the Commission regulate other inducements. Rule 1260-02-.33(1) allows a noncash gift, prize, or other valuable consideration as an inducement only under the sponsorship and with the approval of the firm and only in a signed writing disclosing the item, its fair market value, the time and place of delivery, and any conditions. Rule 1260-02-.33(2), amended effective September 23, 2025, extends the cash prohibition to gift cards and similar cash-based incentives, with two exceptions: a gift card at an open house for other licensees, and a gift card as a closing gift, which may not then be used in advertising to induce business. Rule 1260-02-.12(7) requires any guaranty, warranty, or offer made to induce an agency relationship or contract to be in writing and to disclose all pertinent details on its face.
Keep going: the full Tennessee Real Estate Broker guide covers every section of the exam. Tennessee Real Estate Broker Exam Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
State-specific details
State exam facts
- State regulator
- Tennessee Real Estate Commission (TREC)
- Exam vendor
- PSI
- Prelicensing education
- 120 classroom hours, including 30 hours covering office or brokerage management
- Passing score
- 75% on each portion
- Scored questions
- 125
- Time limit
- 240 minutes
Who regulates real estate brokers in Tennessee?
The Tennessee Real Estate Commission (TREC), within the Department of Commerce and Insurance, licenses brokers and affiliate brokers under the Tennessee Real Estate Broker License Act of 1973 (Tenn. Code Ann. tit. 62, ch. 13). TREC contracts with PSI to deliver the licensing exams.
What experience do I need before the Tennessee broker exam?
Tenn. Code Ann. § 62-13-303(c) requires a broker applicant to certify 120 classroom hours in real estate, including 30 hours covering office or brokerage management, and — for anyone licensed as an affiliate broker after May 12, 1988 — to have held an active real estate license for at least 36 months, or 24 months with a baccalaureate degree with a major in real estate. Within three years of the original broker license, § 62-13-303(h) requires a further 120 classroom hours.
How is the Tennessee broker exam structured?
PSI bulletin 511 sets the broker exam at 125 scored items in two independently passed portions: a 75-item national portion scored to 80 points in 150 minutes, and a 50-item Tennessee state portion (50 points) in 90 minutes. You need 75% on each — 60 of 80 national points and 38 of 50 state items. Do not use the Affiliate Broker column printed beside it in the same bulletin; that tier is 80 national items and 40 state items at 70%.
What is on the Tennessee broker state portion?
PSI bulletin 511 sets nine areas for the Broker tier: Duties and Powers of the Real Estate Commission (6 items), Licensing Requirements (5), Advertising and Marketing (7), Broker/Affiliate Relationships (6), Handling of Documents and Record Keeping (6), Handling of Trust/Escrow Funds (7), Other Improper Activities and Consumer Protection (3), Agency and Disclosure Issues (7), and Special Areas of Practice (3). Advertising, trust and escrow funds, and agency are the joint-largest at 14% each, so most of your study time belongs in Tenn. Code Ann. tit. 62, ch. 13 and TREC rules 1260-01 and 1260-02.
Sources: https://test-takers.psiexams.com/api/content/bulletin/511, https://www.tn.gov/commerce/regboards/trec.html, https://publications.tnsosfiles.com/rules/1260/1260.htm
In the Tennessee Real Estate Broker guide: A 60-question national practice exam, with a key that explains all four options and not just the right one. Practice here stays free.