Tennessee Real Estate License: A Step-by-Step Guide

Thinking about a real estate career in Tennessee? Buckle up because you’ll need your Tennessee real estate license! It’s a journey full of learning, exams, and fees. Fear not, as we’ve got you covered in this guide to the whole licensing process. You can be on your way to a new, fulfilling career within a few months.

Pre-Qualifications

You must be at least 18 years old before starting the Tennessee real estate licensing process. This is so you can legally enter contracts, which is critical to the real estate business.

Tennessee requires applicants to have a high school diploma or equivalent education, like a GED.

Finally, Tennessee requires licensees to be US citizens, qualified aliens as defined under the Tennessee Code, or foreign nationals not physically present in the US. As part of the application, you’ll submit an eligibility verification.

Also, if you have ever been on parole or probation, you must wait at least two years after your parole, conviction, or release from prison to sit for the licensing exam.

If you have a prior conviction and want a decision made about your license eligibility before going through the process, you can ask for a review. Gather your conviction-related documents and fill out a “Application for Decision Regarding Prior Convictions” form.

Pre-License Education

First, note that Tennessee uses the terms “Affiliate Broker” and “Broker.” Your first license will be for an “Affiliate Broker” license.

To get your Tennessee real estate license, step one is completing a total of 90 hours of pre-license education. In the first 60 hours, you’ll learn all about property ownership, contracts and deeds, financing, and much more. You can register for the licensing exam after successfully passing the first 60 hours, but you’ll need an additional 30 hours, the “Course for New Affiliates,” before receiving a license.

This education can be completed in a classroom or online setting, but it must be taught by a Tennessee Real Estate Commission (TREC) approved education provider. Check that TREC accredits your course provider before enrolling in pre-license education programs.

Once you complete your initial 60 hours of pre-license education, your education provider will issue a certificate of completion directly to the state’s testing vendor, PSI. This will allow you to register for the licensing exam.

You’ll also be given a letter of completion, which is essential for the Tennessee licensing application. Keep it in a safe place as you work through the following steps.

Should you already hold a real estate license in another state, your licensing steps may differ slightly based on TREC reciprocity.

The Licensing Exam

PSI Exams Online proctors Tennessee’s real estate licensing exam. Once your pre-license school sends your certificate of completion, schedule the exam through their website or phone. Please wait at least 24 hours for the certificate to upload into the system. Usually, you will receive an email or a postcard from PSI letting you know you can register for the test.

The Tennessee real estate affiliate broker exam has two portions: a national section and a state-specific section. There are 80 questions in the national portion, with 160 minutes to complete it, while the state portion has 40 questions to be answered in 80 minutes. The exam fee is $39 for each attempt, and the fee is the same regardless of if you’re taking one section or two.

Studying and preparing well for this exam is crucial, as passing it is essential for obtaining your license. PSI publishes a Candidate Brochure with detailed information about the test process and examination questions.

Note that a passing result starts a clock on your affiliate broker license application. You’ll have six months to successfully complete the following steps and apply for the Tennessee real estate license.

Background Check

After passing the exam, the TREC requires all new initial licensees to be electronically fingerprinted for a background check. Fingerprints are done through the provider IndentoGO and are run through the Tennessee Bureau of Investigation and Federal Bureau of Investigation.

Use the OIR# TN920784Z and input service code 28TZ99.

The fee was $35.15 in 2023.

Keep a receipt of your electronic fingerprints, as you’ll need it for the application.

Take the “Course for New Affiliates”

This 30-hour module must be taken and passed before applying for your license. It covers more information beyond the initial 60-hour course on Tennessee agency and disclosure laws, proper client representation, transaction contracts, ethics, fair housing, property management, and finance. The course provider will give you a letter of completion once the 30 hours. Keep it with your 60-hour certificate, as both are required with the license application.

Errors & Ommissions Insurance

You must have Errors & Omissions (E&O) insurance when you apply for active licensure. This coverage is for your protection against lawsuits arising from errors and omissions on the job. Ensure you get E&O insurance covering any claims made during this interim period.

See an example of E&O insurance coverage for real estate.

Licensing Application

The Tennessee Department of Commerce and Insurance (DCI) oversees the license application process. Affiliate brokers can apply online through the CORE portal. The licensing fee as of 2024 was $91.00. Follow their directions to create an account and start the process.

Keeping your Tennessee Real Estate License

Once you’ve earned your license, congratulations! Now, it’s up to you to keep learning and growing professionally. In Tennessee, real estate licenses renew every two years and require 16 hours of continuing education.

Another essential part of becoming a licensed Tennessee real estate agent is who you pick as a broker. Every individual has a unique way of working and desires for support in the entry days of their career. Affiliating with the brokerage firm that supplies what you’re looking for helps set the stage for a long-lasting career.

Remember that becoming an excellent agent continues after the licensing process ends. It’s a lifelong career with a continuous commitment to serving people in achieving their homeownership goals.

Resources

• So You Want to Be A Real Estate Agent
• Top Skills Every Real Estate Agent Needs
• Your First 100 Days As A Brand New Real Estate Agent
• Top 5 Steps For Newly Licensed Agents