Tennessee License Law (T.C.A. Title 62, Ch. 13)
Tennessee real estate licensing is governed by Title 62, Chapter 13 of the Tennessee Code Annotated and administered by the Tennessee Real Estate Commission (TREC). This chapter reviews Tennessee's license levels, supervision, and the E&O insurance requirement.
The Tennessee Real Estate Commission
TREC licenses and regulates affiliate brokers, brokers, and firms under Title 62, Chapter 13. It sets education requirements, enforces standards of conduct, and disciplines licensees for violations. Applicants and licensees deal with TREC for licensing, renewal, and complaints.
License Levels and Supervision
Tennessee's entry-level license is the affiliate broker, which must be held under a principal broker who supervises the affiliate's activities. With experience and education, an affiliate broker may become a broker and later a principal broker. Affiliate brokers may not operate independently.
The Errors and Omissions Insurance Requirement
A hallmark of Tennessee licensing is that every active licensee must carry errors and omissions (E&O) insurance covering real estate activities. TREC makes a group policy available, but licensees may buy equivalent coverage independently. A license cannot remain active without current E&O insurance.