Special Areas of Practice
Three state items cover time-share, property management, and commercial or industrial real estate.
Time-Share
The Tennessee Time-Share Act of 1981 is compiled in title 66, chapter 32, and Tenn. Code Ann. 62-13-312(b)(21) makes violating it or its rules a ground for discipline under the license act. Rule 1260-06-.04 requires a boldface, conspicuous rescission statement in every public offering statement and immediately above the purchaser's signature line in every contract for the sale of a time-share interval: the buyer may cancel within ten days from signing where an on-site inspection of the project was made before signing, and within fifteen days where it was not, by hand delivery, by prepaid United States mail postmarked within the period, or by time-stamped electronic mail. Rule 1260-06-.02 requires the developer to obtain a signed and dated receipt for the public offering statement and to keep it four years. Rule 1260-06-.03 requires escrowed deposits to be held by an independent bonded escrow company or insured financial institution that is not the developer or under common control with it.
Property Management
Tenn. Code Ann. 62-13-104(a)(1)(E) exempts from licensure a resident manager for a broker or an owner, or an employee of a broker, who manages an apartment building, duplex, or residential complex where duties are limited to supervision, exhibition of residential units, leasing, or collection of security deposits and rentals, and expressly bars that person from negotiating the amounts of security deposits or rentals or negotiating leases on behalf of the broker. Rule 1260-02-.09(12) requires lease-related trust money to be held in one or more escrow or trustee accounts separate from the sales escrow account. Tenn. Code Ann. 62-13-104(b) is a separate regime for vacation lodging services, defined as managing, marketing, booking, and renting residential units owned by others as sleeping accommodations for pay to transients staying no more than fourteen days, with its own designated agent license under rules 1260-07-.02 and 1260-07-.03.
Commercial and Industrial Real Estate
Tenn. Code Ann. 62-13-405(e) provides that transactions involving the transfer or lease of commercial properties, the transfer of property by public auction, the transfer of residential properties of more than four units, or the lease or rental of residential properties are not subject to the disclosure requirements of sections 62-13-403, 62-13-404, and 62-13-405. Commercial work therefore sits outside the statutory licensee duties and the written agency confirmation, though the license act's other provisions on compensation, trust money, records, and advertising apply with full force. The residential property condition disclosure regime in title 66, chapter 5, part 2 runs on its own track and covers sales of one to four dwelling units.
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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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