Tennessee License Law and the Broker Tier
Tennessee real estate practice is governed by the Tennessee Real Estate Broker License Act of 1973 (Tennessee Code Annotated Title 62, Chapter 13) and the rules of the Tennessee Real Estate Commission (TREC). This chapter covers what a broker license authorizes, the principal broker's role, and the Commission's authority.
TREC and the Broker License Act
The Tennessee Real Estate Commission, within the Department of Commerce and Insurance, licenses and regulates brokers and affiliate brokers under the Broker License Act of 1973. Anyone who, for compensation, lists, sells, buys, leases, or negotiates real estate for others must be licensed unless a specific exemption applies. The Commission may issue, renew, suspend, or revoke licenses and impose discipline. Tennessee's entry license is the affiliate broker; the broker is the higher tier reached through qualifying experience and additional education.
The Principal Broker
Every Tennessee real estate firm must have a principal broker who is responsible for the firm and for supervising its affiliated licensees. The principal broker oversees advertising, recordkeeping, escrow handling, and the licensed conduct of affiliate brokers and other brokers in the firm. An affiliate broker may perform licensed activity only for and in the name of the firm's principal broker, and compensation flows through that firm rather than directly from a client.
Education and Experience Path
To move from affiliate broker to broker, a candidate must have qualifying active experience and complete the required education, including a 30-hour Office/Broker Management course, and be fingerprinted for a background check. This added preparation reflects the broker's greater responsibility for supervision and trust-fund handling. Licensees must also complete continuing education to renew, keeping current on law changes and required topics.