Other Improper Activities and Consumer Protection
Three state items cover improper listing agreements, discrimination, and the residual category of misconduct in Tenn. Code Ann. 62-13-312(b).
Improper Listing Agreements
Tenn. Code Ann. 62-13-312(b)(9) makes it a ground for discipline to use or promote the use of a listing agreement form, sales contract form, or offer to purchase form that fails to specify a definite termination date. Rule 1260-02-.07 forbids a broker or affiliate broker to accept or enter a listing based on a net price, meaning a price excluding the customary commission and expenses associated with the sale. Rule 1260-02-.36 requires a licensee entering an exclusive buyer representation agreement to advise and confirm in writing that the buyer should arrange all viewings through the licensee, should tell any other licensee encountered that he is represented, and whether a commission will be owed if the buyer purchases without the licensee's assistance.
Discrimination
Tenn. Code Ann. 62-13-312(b)(13) makes it a ground for discipline to violate any federal, state, or municipal law prohibiting discrimination in the sale or rental of real estate because of race, color, religion, sex, or national origin. Tenn. Code Ann. 4-21-601, in the Tennessee Human Rights Act, prohibits discriminatory practices in housing and real estate transactions because of race, color, creed, religion, sex, disability, familial status, or national origin; creed is the state addition to the federal list. Tenn. Code Ann. 62-13-303(a)(1) separately forbids the Commission to deny a license on the basis of race, color, religion, sex, or national origin.
Other Misconduct
Tenn. Code Ann. 62-13-312(b) reaches substantial and willful misrepresentation, promises the licensee did not intend to keep, misleading or untruthful advertising including misuse of the term realtor, failing to account for or remit money belonging to others, acting for more than one party without written consent, inducing a party to break a contract for the licensee's personal gain, failing to disclose an intention to acquire a listed property, engaging in the unauthorized practice of law, and, as a catch-all in subdivision (b)(20), any conduct constituting improper, fraudulent, or dishonest dealing. Subdivision (b)(12) covers convictions for forgery, embezzlement, obtaining money under false pretenses, bribery, larceny, extortion, and conspiracy to defraud, and section 62-13-312(f) requires the licensee to notify the Commission within sixty days of such a conviction, after which the license is automatically revoked unless a hearing is requested in writing within that period.
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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
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