Tennessee Real Estate Study Guide 2026 — Free Cheat Sheet

Every real estate office must have a principal broker devoted to full-time management. Licensees may only be engaged by qualified principal brokers who are actively in the business and available during business hours.

• ✓No licensee may engage in real estate activity in an office unless a principal broker is devoted to full-time management of that office
• ✓A licensee may be engaged only by a principal broker who is engaged primarily in the real estate business AND accessible during normal daytime working hours

Applicants with certain criminal backgrounds face a mandatory waiting period before they may sit for the exam or be considered for licensure. The two-year clock runs from the latest of several possible dates, and denial triggers a waiting period before reconsideration.

• ✓No person is eligible for examination or licensure until two (2) years have passed from the date of expiration of probation, parole, or conviction, or from release from incarceration, whichever is later
• ✓The restriction applies to all felonies and to misdemeanors involving theft of money, services, or property
• ✓An applicant denied licensure after appearing before the Commission is not eligible for reconsideration for six (6) months from the date of denial

A person holding a certificate of employability under T.C.A. § 40-29-107 is treated differently from the standard criminal-history bar; they cannot be denied solely on past criminal activity but must appear before the Commission for case-by-case review.

• ✓A certificate of employability holder shall not be denied a license based solely on past criminal record
• ✓Such applicant must appear before the Commission for case-by-case consideration of whether to grant or deny the license

Applicants with a felony, theft-related misdemeanor, or occupational disciplinary sanction within the past 10 years must complete a prescribed form, submit certified court/disciplinary documents, and appear before the Commission with their principal broker.

• ✓Applies to any felony, theft-related misdemeanor, or occupational licensing disciplinary sanction within the past ten (10) years
• ✓Applicant must complete a Commission form, submit certified copies of court dispositions or disciplinary orders, and appear before the Commission
• ✓Applicant must ensure the presence of his or her principal broker (or intended principal broker) per Rule 1260-01-.19
• ✓If the court has no record due to age, applicant must submit a letter from the court clerk stating the absence of records

Both affiliate broker and broker applicants must follow the testing vendor's published procedures, and passing the exam alone does not guarantee licensure.

• ✓Applicants must follow the procedures published by the TREC-approved testing vendor for appointments, information, and deadlines
• ✓An applicant who passes an examination is not necessarily qualified for licensure

Approved courses must incorporate methods to measure successful completion, including attendance minimums, make-up provisions, and passing standards. Attendance thresholds vary by course length, and a comprehensive final exam is required for longer courses but may be waived for short CE/post-licensing courses.

• ✓Minimum attendance is 80%, but 100% if the course is 8 or fewer classroom hours
• ✓Make-up provisions required for all missed classes
• ✓Minimum passing score of 70% and a comprehensive final exam required if course exceeds 8 classroom hours
• ✓Affiliate broker/broker courses of 8 hours or less may be approved for CE or post-licensing without a final exam
• ✓Each classroom hour consists of 50 minutes of actual instruction
• ✓Courses must consist of no fewer than 2 classroom hours

All applicants for an affiliate broker license must complete a 60-hour course in basic principles of real estate under T.C.A. § 62-13-303. The course must include significant instruction across a defined set of subject areas.

• ✓A 60-hour basic principles course is required of all affiliate broker license applicants
• ✓Required subjects include agency relationship, contracts, governmental controls (including TN Real Estate Broker License Act), legal aspects, real estate math, valuation, finance, forms, TN laws/rules, and fair housing
• ✓The Commission may require additional subjects by reasonable written notice

Applicants for a broker's license must complete an 'office or brokerage management' course covering management theory, contracts and closing statements, staffing, financial systems, market analysis, and governmental controls including the TN Real Estate Broker License Act.

• ✓Broker applicants must complete an office/brokerage management course under T.C.A. § 62-13-303
• ✓Course must include significant instruction on management functions, recruiting/staffing, financial systems, and TN Broker License Act
• ✓The Commission may add/delete subjects by reasonable written notice

Effective January 1, 1993, all courses approved for continuing education must be directly related to an enumerated list of real estate topics. The Commission may add or delete subjects by written notice.

• ✓CE courses must relate to approved topics such as valuation, contracts, agency, financing, license law and rules, property management, fair housing, antitrust, ethics, and professional liability
• ✓The Commission may add or delete any subject by reasonable written notice to the sponsor/instructor

A candidate may be deemed to have completed the 60-hour basic principles course through qualifying college, university, or law degrees with specified real estate coursework on the transcript.

• ✓A real estate degree with a 3-hour principles course (30+ hours) plus two more courses totaling 60+ hours in real estate qualifies
• ✓A law degree with a 3-hour real property course (30+ hours) plus 60 other hours in contracts and agency qualifies

Any individual or firm (partnership, corporation, or association) operating as a Rental Location Agency in Tennessee must obtain a special license from the Tennessee Real Estate Commission before beginning operations. Licensed real estate brokers and salespersons employed by licensed brokers are exempt from this special license requirement. Applicants must demonstrate honesty, integrity, and business organization via a special application, and the Commission may require a personal appearance for an oral examination or interview.

• ✓A special Rental Location Agency license is required before operating in Tennessee
• ✓Licensed real estate brokers and salespersons employed by brokers are exempt from this special license
• ✓Applicants must furnish proof of honesty, integrity, and business organization on a special application
• ✓The Commission may require the applicant to appear personally for an oral exam or interview

Chapter 1260-07 applies only to persons who perform vacation lodging services and to vacation lodging service firms, as defined and governed under T.C.A. § 62-13-104(b). These rules are administered by the Tennessee Real Estate Commission.

• ✓Rules in Chapter 1260-07 apply only to persons performing vacation lodging services and vacation lodging service firms
• ✓Vacation lodging services are defined and governed under T.C.A. § 62-13-104(b)

Before transferring a time-share interval, and no later than the date of any sales contract, the developer must obtain a signed and dated receipt from the purchaser for the public offering statement (including amendments and supplements). The receipt must state the number of pages in the statement as filed with the Commission, and the developer must retain it for four years.

• ✓Developer must obtain a signed, dated receipt for the public offering statement before transfer and no later than the sales contract date
• ✓Receipt must specify the number of pages in the public offering statement as filed
• ✓Developer must retain the receipt for four (4) years

TREC Chapter 1260-04 does not contain its own procedural rules for contested case hearings. Instead, it directs that the Rules of Procedure for Hearing Contested Cases are governed by the Rules of the Secretary of State, Chapter 1360-04-01. Candidates should know that when the Tennessee Real Estate Commission conducts a contested case hearing, the procedures come from the Uniform Administrative Procedures Act framework administered under the Secretary of State's rules rather than a separate TREC procedural chapter.

• ✓Rules of Procedure for Hearing Contested Cases for TREC are found in the Rules of the Secretary of State, Chapter 1360-04-01
• ✓TREC Chapter 1260-04 itself contains no independent contested-case procedural rules and cross-references the Secretary of State rules
• ✓Authority for this chapter is T.C.A. § 4-509

To obtain a designated agent license, an applicant must have a high school diploma or GED and certified proof of completing eight (8) hours of pre-licensing education. Applicants with criminal histories face a waiting period before licensure consideration.

• ✓Applicant must have a high school diploma or general education diploma (GED)
• ✓Applicant must show certified proof of completion of eight (8) hours of pre-licensing education
• ✓Applicant not considered for licensure until two (2) years have passed from expiration of probation, parole, conviction, or release from incarceration, whichever is longer
• ✓The two-year restriction applies to all felonies and to misdemeanors involving theft of money, services, or property
• ✓An applicant denied by the Commission is not eligible for reconsideration for six (6) months from the date of denial

To terminate affiliation, a licensee or principal broker submits a completed TREC Form 1 (Transfer, Release and Change of Status Form) or an online submission. The principal broker's supervisory responsibility ends upon the Commission's receipt of the release or online submission.

• ✓Terminating affiliation requires a completed TREC Form 1 (hand-delivered, mailed, e-mailed, or on a designated form) or online submission
• ✓Principal broker's supervisory responsibility for the licensee's future acts terminates upon the Commission's receipt of the release form or online submission
• ✓The principal broker must retain a copy of the executed form or confirmation of online submission

After release, a licensee has ten days to complete administrative measures for change of affiliation or retirement, and may not perform licensed activities until the change is received and processed by the Commission.

• ✓Within 10 days after the date of release, the licensee must complete required administrative measures for change of affiliation or retirement
• ✓The licensee shall not engage in any activities defined in § 62-13-102 until a change of affiliation is received and processed by the Commission
• ✓Failure to comply may result in disciplinary action

An online firm transfer is recognized as complete only if the receiving principal broker verified the licensee's active license and E&O insurance beforehand, and the submission is complete with electronic signature and payment.

• ✓Before online transfer, the receiving principal broker must verify the licensee has an active TN license and current E&O insurance
• ✓The submission must be complete, contain an electronic signature, and have payment received; otherwise the licensee is placed in broker release status

A licensee who terminates affiliation may not take or use listings or buyer representation agreements secured through the firm unless the principal broker authorizes it in writing. The principal broker must promptly grant release upon demand.

• ✓A departing licensee may not take or use property listings or buyer representation agreements secured through the firm unless authorized in writing by the principal broker
• ✓Upon a licensee's demand for release, the principal broker must promptly grant it and return the license
• ✓The Commission will not intervene in disputes over debts, loans, draws, or commissions between firms, brokers, and affiliates

Special procedures apply when the principal broker or affiliated licensee is deceased, incapacitated, or refuses to sign a release.

• ✓If the principal broker is deceased, physically unable, or refuses to sign, the licensee must submit an Affidavit for Release
• ✓If the affiliated licensee is deceased, physically unable, or refuses to sign/submit, the principal broker must submit a completed TREC Form 1 or online submission

When a developer must deposit buyer funds into an escrow account (held in Tennessee by an independent bonded escrow company or insured financial institution), the escrow agent must be independent. It cannot be the developer, an employer/employee of the developer, a project broker or sales agent for the developer's time-share property, or any person controlling, controlled by, or under common control with the developer.

• ✓Escrow funds must be held in Tennessee by an independent bonded escrow company or insured financial institution
• ✓The escrow agent cannot be the developer, its employer/employee, a project broker or sales agent, or an affiliate under common control

Where a developer is permitted to withdraw buyer payments prior to substantial completion, the funds may be used ONLY to pay construction costs of the improvements comprising the time-share project. 'Construction costs' means expenses reasonably incurred in building, furnishing, and landscaping the project, including architectural, engineering, finance, and legal fees.

• ✓Withdrawn payments may be used only for construction costs of the project
• ✓Construction costs include building, furnishing, landscaping, plus architectural, engineering, finance, and legal fees

Each escrow agent must maintain, per generally accepted accounting principles, separate records for each project including the owner's name, identification of the interval, amount and date of deposit, and the amount, date and payee of each check drawn. The Commission may examine and copy these records at reasonable hours to verify compliance.

• ✓Escrow agent must keep separate GAAP records per project (owner name, interval ID, deposit amount/date, and each check's amount/date/payee)
• ✓The Commission may examine and copy relevant records at all reasonable hours

Each individual employee of a licensed rental location agency must obtain a separate individual license and complete a similar application before beginning employment. These individual licenses are issued, renewed, or transferred on the same basis as all other TREC licenses. A change of business address is treated as a transfer of license, and license retirements are not permitted for rental location agents.

• ✓Each employee of a rental location agency must hold a separate individual license
• ✓Individual licenses are issued, renewed, and transferred on the same basis as other TREC licenses
• ✓A change of business address is considered a transfer of license
• ✓Retirement of a rental location agent's license is not allowed

The passing score is set by the testing vendor based on a difficulty study. Applicants licensed in another state may be excused from the uniform principles portion under specific conditions.

• ✓Minimum passing requirement is determined by the testing vendor based on a difficulty study for entry-level licensees
• ✓An applicant may be excused from the 'uniform principles of real estate' portion if they hold a license in another state, completed a TREC-approved exam, and attained at least the minimum passing score on the uniform principles portion

Cheating during an exam results in forfeiture of grading and possible further discipline. Unsuccessful applicants receive an analysis and must follow reexamination procedures.

• ✓An applicant detected cheating forfeits the right to grading and may face further Commission action
• ✓An unsuccessful applicant receives a written analysis of test results and must follow the testing service's reexamination procedures

Courses meeting educational requirements must be under the personal and direct supervision of a Commission-approved instructor who meets training, education, and subject-matter experience standards.

• ✓Effective January 1, 1995, instructors must complete a Commission-approved instructor training course
• ✓Instructors must hold a high school diploma or equivalent and have no unresolved complaints on file
• ✓Principles/math/sales instructors must be licensed brokers with 5 years' experience; law instructors must be ABA-accredited law school graduates
• ✓College/university credit instructors need a master's plus 3 years experience or a terminal degree in the area

The designated agent has supervisory, availability, and escrow responsibilities for the vacation lodging service firm and its offices.

• ✓The designated agent is responsible for supervising all employees of the firm
• ✓The designated agent must be reasonably available to manage and supervise each vacation lodging service office during regular business hours
• ✓The designated agent is responsible for maintaining the vacation lodging service escrow account

A principal broker cannot allow affiliated licensees to work without a valid license and E&O insurance coverage. Licensees are individually responsible for meeting all legal requirements, and status/affiliation changes must go through the principal broker.

• ✓No principal broker may permit a broker, affiliate broker, or time-share salesperson to engage in real estate business without a valid license AND errors and omissions insurance coverage
• ✓Each licensee is individually responsible for retention requirements, including paying fees and completing real estate education
• ✓Any change of affiliation or status in a firm must be obtained through the firm's principal broker
• ✓Tennessee licensees holding nonresident licenses in other states must file copies with TREC and their principal broker

A time-share salesperson may only work in time-share transactions when properly affiliated with a firm connected to a registered time-share project.

• ✓A time-share salesperson may only participate in time-share transactions when affiliated with a firm that is affiliated with a registered time-share project

A boldface, conspicuous rescission statement must appear in every public offering statement and in every sales contract immediately above the purchaser's signature space. Purchasers may cancel within ten (10) days of signing if they made an on-site inspection before signing, or within fifteen (15) days if no such inspection was made. Cancellation may be done by hand delivery, prepaid U.S. mail, or electronic mail within the designated period.

• ✓Rescission statement must appear in boldface/conspicuous type in every public offering statement and every sales contract above the signature line
• ✓Cancellation period is 10 days with an on-site inspection before signing, or 15 days without an inspection
• ✓Notice of cancellation may be given by hand delivery, prepaid U.S. mail (postmarked in time), or time-stamped email

Firms must display a sign with their registered firm name, and license/location-change applications require zoning compliance certification from the proper governmental authority.

• ✓Each licensed firm must conspicuously display an outside sign containing the firm name as registered with the Commission
• ✓Applications for a license or change of location must include written certification of compliance with zoning laws from the proper governmental authority

A location is deemed a branch if it is advertised, has a registered mail drop, or solicits phone calls. Model homes and modular units are exempt from branch licensing if they meet specific conditions.

• ✓A location is a branch if the licensee advertises it, has a USPS-registered mail drop there, or solicits phone calls to it
• ✓Model homes/modular units avoid branch licensing only if advertised in conjunction with the main office, have no mail drop, are not the sole sales office, allow no unlicensed activity, and are adequately supervised by the principal broker

Sponsors must keep permanent student records and submit completion rosters to the Commission. Licensees must provide their file identification number to receive credit.

• ✓Sponsors must maintain accurate, permanent records available to the Commission on request
• ✓Licensees must provide their file identification number at registration or may not receive CE/post-licensing credit
• ✓Sponsors must submit a roster of successful completers within 10 working days of course completion

Both agency and individual license applicants are subject to credit, criminal, and background investigations by authorized TREC agents before any license is approved. TREC conducts periodic office inspections to ensure compliance with Chapter 663 of the Public Acts of 1978.

• ✓Applicants are subject to credit, criminal, and background investigation before license approval
• ✓Office inspections are conducted periodically to assure compliance with the governing statute

Every Rental Location Agent must give each customer who pays full or partial consideration for the agent's services a contract or receipt that conforms to the requirements of Rule 1260-03-.05.

• ✓A contract or receipt must be provided to any customer who pays full or partial consideration
• ✓The contract or receipt must conform to the specific terms in Rule 1260-03-.05

The Commission may assess civil penalties against any person required to hold a designated agent and/or vacation lodging services license, in addition to or in lieu of other disciplinary action. Penalties may accrue daily and are set based on statutory factors.

• ✓Civil penalty of $0–$1,000.00 may be assessed for each separate violation of a statute, rule, or order pertaining to the Commission
• ✓Each day of a continued violation may constitute a separate violation
• ✓Penalty may be assessed in addition to or in lieu of other lawful disciplinary action
• ✓In setting the amount, the Commission may consider deterrent effect, circumstances of the violation, severity and risk of harm to the public, economic benefits gained by the violator, and the interest of the public

The rule sets specific dollar amounts for original licenses, renewals, and various status changes, plus a mandatory recovery account contribution and a late-renewal penalty.

• ✓Original license issuance fee: ninety dollars ($90.00)
• ✓License renewal fee: seventy-five dollars ($75.00)
• ✓Change of Principal Broker: $25.00; Transfer of affiliation or retirement status change: $25.00; Certification of licensure: $25.00
• ✓Late renewal penalty: fifty dollars ($50.00) per month (or portion) within the 60-day reinstatement window under T.C.A. § 62-13-319(a), subject to Commission waiver for good cause
• ✓Original license applicants pay an additional one dollar ($1.00) into the real estate education and recovery account

A developer must not intentionally cause a material change in a time-share program without at least ten (10) days advance notice to the Commission, and must notify the Commission of any material change within ten (10) days of first learning of it. A 'material change' is a change that renders disclosed information/documents false or misleading, including revisions to the budget or delays in promised improvements. Upon a material change, the Commission may request voluntary suspension of sales or take statutory action.

• ✓Intentional material changes require at least 10 days advance notice to the Commission
• ✓Unforeseen material changes must be reported within 10 days of the developer first knowing
• ✓Material change includes revised budgets or delayed/promised improvements rendering disclosures false or misleading
• ✓The Commission may request voluntary suspension of sales or act under T.C.A. § 66-32-121

A post office box cannot serve as a firm's business location, though it may be included in a business address for receiving mail.

• ✓Use of a post office box as a business location is prohibited
• ✓A post office box may be included in a business address only for the purpose of receiving mail

The Commission may withdraw course approval for violations, inaccurate application information, dissemination of false information, misuse of Commission exam questions, or deficient instructor performance.

• ✓Approval may be withdrawn for violating the chapter or applicable law, or for materially inaccurate/misleading application information
• ✓Approval may be withdrawn for possessing or distributing Commission examination questions
• ✓Deficient instructors must receive adequate notice and an opportunity to correct before withdrawal

The contract must include a required notice disclosing that the service is an information service only, that no attempt is made to secure housing for the customer, and that the service offers only compiled information about available rental housing units.

• ✓A NOTICE legend stating 'THIS IS AN INFORMATION SERVICE ONLY' must appear
• ✓The legend must state no attempt is made to secure housing for the customer
• ✓The legend must clarify the service offers only compiled information on available rentals

The contract must include a refund legend: the customer is entitled to a refund of all but $10.00 if, after a bonafide effort, they fail to find a rental through the service. To qualify, the customer must contact the agent (in person or by phone) at least once each day for at least 10 days and attempt to contact each landlord as soon as possible. A refund also applies if the customer finds a rental other than through the service before the 10 days expire. Refunds are requested in writing and mailed within 10 days of receipt.

• ✓Customer is entitled to a refund of all but $10.00 upon failure to find a rental after bonafide effort
• ✓Customer must contact the agent daily for at least 10 days to qualify for the refund
• ✓Finding a rental independently before the 10 days expire also entitles the customer to the refund
• ✓Refund must be mailed within 10 days of receipt of the written request

The contract or receipt must contain the legends set forth in paragraphs (2), (3), and (4), and provide blanks for the information in paragraph (5). Legends must be in boldface type of at least the greater of 10 points or the largest type used elsewhere in the document. If not printed, legends must be in all capital letters, and no other part except the agent's name may be in all capitals.

• ✓Legends must be boldface, at least 10 points or the largest type used in the remainder of the document
• ✓Non-printed legends must be in all capital letters
• ✓Only the agent's name (aside from legends) may otherwise appear in all capitals

The contract must include a legend, with the agent's name inserted, requiring a representative to mark one of two boxes after checking current listings: either that rental property meeting the customer's needs has been verified as available within the last 72 hours, or that no such property can currently be verified as available.

• ✓A representative must mark a box after checking current listings
• ✓One option verifies property meeting the customer's needs was available within the last 72 hours
• ✓The other option states no property meeting the needs can be verified as currently available

The contract must provide spaces to record the property sought by the customer: maximum rent per month, number of bedrooms, number of children, pets, and general location. For general location, the agent must show a map dividing the served area into numbered districts no larger than zip code areas (with possible special districts for universities/high-density renter areas), and record the acceptable district numbers.

• ✓Required blanks include maximum rent, number of bedrooms, number of children, pets, and general location
• ✓General location must be specified using numbered districts no larger than zip code areas
• ✓The agent must show the customer a district map to select acceptable areas

To be certified as an instructor of vacation lodging services, an applicant must have a high school diploma or GED and meet an experience or licensing requirement. A review fee may apply.

• ✓Applicant must have a high school diploma or general education diploma (GED)
• ✓Applicant must either hold a license as a designated agent under the Vacation Lodging Services Act OR possess a minimum of three (3) years experience in vacation lodging services
• ✓If a course concerns a field where a degree/certification is commonly awarded, the instructor must have that degree/designation or at least three (3) years of relevant experience in that field
• ✓The Commission may charge a $25 fee per instructor in an education cycle to review the instructor's qualifications

Brokers and affiliate brokers may not accept or enter a listing based on a net price, which excludes the customary commission and sale expenses.

• ✓No broker or affiliate broker shall accept or enter a listing based on a "net price"
• ✓A "net price" is a price excluding the customary commission and expenses associated with the sale

Acquisition, sales, and managing agents must furnish specified information on Commission forms, including principal office address/phone, responsible managing employee, applicable time-share program(s), and the developer's name/address. Managing agents must also disclose the financial institution holding owner funds for common expenses. Each agent must promptly report any change in submitted information.

• ✓Acquisition and sales agents must provide office address/phone, responsible managing employee, affiliated agents, program(s), and developer name/address
• ✓Managing agents must additionally disclose the financial institution holding funds collected for common expenses and maintenance
• ✓All agents must promptly report changes in submitted information

An exchange agent may disclose the information required by T.C.A. § 66-32-122(f) in any clear and understandable format, but the statement must be filed with the Commission on or before July 1 of each year.

• ✓Exchange agents may use any clear, understandable disclosure format
• ✓The exchange agent's statement must be filed with the Commission by July 1 each year

A distance education course using printed materials may be approved if it provides printed materials, a course outline, faculty availability info, and periodic graded exercises, with a final exam for longer courses.

• ✓Course must provide a manual/printed materials, comprehensive outline, and information on faculty availability
• ✓Must contain at least 6 written exercises submitted periodically, graded, and returned
• ✓Courses over 8 hours of credit require a comprehensive final exam before roster submission

Documents may be filed by several methods, and the filing date depends on the method used. Mailed documents use the postmark; electronic and hand-delivered documents must arrive during business hours.

• ✓Documents may be remitted by mail, fax, e-mail, hand delivery, or approved online submission
• ✓For mailed documents, the filing date is determined by the official postmark
• ✓Electronic or hand-delivered documents are not considered filed if received after business hours on a deadline date

For property not being advertised, the agent must not represent it as available for rental unless availability has been verified within 72 hours of the representation. If it cannot be verified within that time, the property must be removed from the listings until re-verified, and no representation of availability may be made.

• ✓Non-advertised property availability must be verified within 72 hours of any representation
• ✓Property that cannot be verified must be removed from listings until re-verified
• ✓No availability representation may be made for unverified property

No rental housing may be advertised in any medium unless its availability has been verified on the day the advertising request is made. Availability of all advertised property must be verified daily while the ad runs. Upon learning advertised property is no longer available, the agent must immediately act to cancel the ad and must immediately advise responding persons that the property is unavailable.

• ✓Advertised availability must be verified on the day the advertising request is made
• ✓Availability of advertised property must be verified daily while the ad continues
• ✓The agent must immediately cancel ads and notify inquirers when property is no longer available
• ✓The agent may inform inquirers of other verified similar listed property

When representing property as available, the agent must fully, accurately, and clearly disclose: date of availability (if not currently available), monthly rent, existence/amount of deposits or extra fees, number of bedrooms, whether a lease is required, restrictions (e.g., no pets, except those imposed by law), type of housing, location by district, utilities paid, and the landlord's telephone number. For advertising only, only the date of availability, monthly rent, and location must be disclosed.

• ✓Full disclosure requires date of availability, rent, deposits/fees, bedrooms, lease requirement, restrictions, housing type, location, utilities, and landlord phone number
• ✓In advertising, only date of availability, monthly rent, and location must be disclosed
• ✓No false representation may be made that property meeting the customer's needs is in the listings

Brokers must promptly tender every written offer until a contract is signed by all parties, deliver executed copies upon acceptance, ensure all terms are in the contract, and handle rejected offers properly.

• ✓A broker/affiliate broker must promptly tender every written offer to purchase or sell until a contract is signed by all parties
• ✓Upon acceptance of an offer or counteroffer, the broker must promptly deliver true executed copies signed by the seller to both purchaser and seller
• ✓All terms and conditions of the transaction must be included in the contract to purchase
• ✓On a rejected offer, the broker must request the seller note the rejection and return it to the offeror or offeror's agent

Active licensees must carry E&O insurance covering all Broker License Act activities. Inactive/retired licensees are exempt until activation, and independently obtained policies must match the Commission's contract minimums.

• ✓An active licensee must carry E&O insurance covering all activities under the Tennessee Real Estate Broker License Act
• ✓A licensee with inactive or retired status is not required to carry E&O insurance until the license is activated
• ✓New licensees and those activating or reinstating mid-period pay a prorated premium
• ✓Independently obtained E&O policies must meet at minimum the same terms as the Commission's policy (limits, deductible, exemptions, and term)
• ✓The Commission performs random audits to verify E&O compliance

Both affiliate brokers and brokers must complete continuing education to renew their licenses. The office/brokerage management course cannot count as CE/post-licensing for affiliate brokers.

• ✓Affiliate brokers issued on/after July 1, 1980 must complete at least 16 hours of CE in the preceding two-year license period
• ✓Brokers issued on/after January 1, 2005 must complete at least 16 hours of CE in the preceding two-year license period
• ✓No CE credit for classroom hours completed during a prior license period; retired licenses (T.C.A. § 62-13-318) are exempt for that period
• ✓The office/brokerage management course is not approved as post-licensing or CE for affiliate brokers
• ✓CE credit is given for approved hours completed in the 12 months immediately preceding original licensure

The Commission charges set fees for original licenses and renewals for vacation lodging service firms and designated agents.

• ✓Original vacation lodging service firm or original designated agent license fee: one hundred dollars ($100.00)
• ✓Each renewal of a license fee: eighty dollars ($80.00)

A registration application must be submitted on the Commission's form or online and, beyond statutory requirements, include copies of sales contract/deed forms and written sales materials, evidence of zoning compliance, and the name/address of the sales agent. Projects not substantially completed must add a certified cost-to-complete estimate, evidence of financial capacity, construction contracts, and the escrow agreement. Projects with a blanket lien must include non-disturbance/subordination agreements or other protections for non-defaulting purchasers.

• ✓Application must include sales/deed forms, written materials, zoning compliance evidence, and sales agent name/address
• ✓Incomplete projects must include a certified cost-to-complete estimate, financial capacity evidence, construction contracts, and escrow agreement
• ✓Projects with a blanket lien/encumbrance must include protections for non-defaulting purchasers under T.C.A. § 66-32-128

The rule defines commingling and trust money. Commingling is mixing others' funds with personal/business funds; trust money is money belonging to others received while acting as agent/facilitator or as temporary custodian.

• ✓Commingling is a licensee maintaining funds belonging to others in the same account as personal or business funds
• ✓Trust money is money belonging to others received by a licensee acting as agent/facilitator, or any money held as temporary custodian of others' funds
• ✓Commingling of funds within firm accounts is expressly prohibited

Principal brokers must maintain separate escrow/trustee accounts for trust money, and affiliated brokers must immediately turn over all trust money to the principal broker.

• ✓Each principal broker must maintain a separate escrow or trustee account for holding trust money received in a fiduciary capacity
• ✓An affiliated broker must pay over all trust money to the principal broker immediately upon receipt
• ✓Principal brokers are responsible at all times for trust money accepted by them or their affiliated brokers

A principal broker may disburse trust money only under specified conditions such as reasonable contract interpretation, written agreement signed by all parties, closing, rejection/withdrawal of offer, interpleader, or court order.

• ✓Trust money may be disbursed upon reasonable contract interpretation, a separate written agreement signed by all interested parties, at closing, upon rejection or withdrawal of an offer, upon filing interpleader, or by court order
• ✓Trust money must be disbursed in a proper manner without unreasonable delay

Absent a compelling reason, earnest money must be disbursed, interpleaded, or turned over to an attorney to interplead within 21 calendar days from receipt of a written disbursement request.

• ✓Absent a compelling reason, earnest money must be disbursed, interpleaded, or turned over to an attorney to interplead within 21 calendar days from receipt of a written request for disbursement
• ✓No postdated check shall be accepted for payment of trust money unless otherwise provided in the offer

When a contract authorizes a principal broker to hold trust money, the contract must specify disbursement terms and who holds the money. A broker is relieved of responsibility when another authorized holder receives the funds.

• ✓A contract authorizing the principal broker to hold trust money must specify the disbursement terms/conditions AND the name and address of the person or firm holding the money
• ✓Where a contract authorizes someone other than the principal broker to hold trust money, the broker is relieved of responsibility upon that escrow agent's receipt of the money

Trust money must be deposited promptly upon acceptance of the offer unless the offer states otherwise, and lease-related trust money must be held in separate accounts.

• ✓Trust money must be deposited into an escrow/trustee account promptly upon acceptance of the offer unless the offer states "Trust money to be deposited by:"
• ✓All trust money relating to the lease of property must be held in one or more separate escrow/trustee accounts

Interest-bearing escrow accounts are neither required nor prohibited, but if used, disclosure, ownership, and accounting requirements apply.

• ✓At contract execution, the licensee must disclose the deposit will be in an interest-bearing account and execute a written agreement on disposition of interest
• ✓The licensee does not own the trust money or interest earned until properly disbursed, and must keep detailed accurate accounting of interest earned for each deposit

Licenses suspended over 30 days for E&O lapse require proof of insurance and escalating penalty fees based on the length of the lapse and whether coverage was backdated.

• ✓Lapse over 30 days but within 120 days: $200 if the carrier backdated for continuous coverage, or $400 if not backdated
• ✓Lapse over 120 days but less than 6 months: $500 penalty fee
• ✓Lapse of 6 months up to 1 year: $500 plus $100 per month (or portion) for months six through twelve

When a license is revoked for failure to maintain E&O insurance, the individual must fully reapply, pay penalties, and satisfy exam and education requirements unless waived.

• ✓Must reapply for licensure and pay all application fees
• ✓Must pay the applicable E&O penalty fees
• ✓Must pass all required examinations and meet current education requirements unless the Commission waives them

A principal broker must ensure all affiliated licensees carry E&O insurance; failure is a supervision violation. A 30-day cure period and a consent order schedule with civil penalties apply.

• ✓A principal broker must ensure all affiliated licensees hold E&O insurance at all times; failure constitutes inadequate supervision
• ✓No penalty applies if, within 30 days of suspension, the affiliate provides proof of insurance OR the principal broker releases the affiliate
• ✓Consent order penalties after 30 days: $200 (backdated) or $400 (not backdated) if resolved within 120 days; $1,000 if resolved after 120 days
• ✓If the principal broker rejects the consent order, a hearing is held before an administrative law judge sitting alone under the UAPA

Time-share program registrations expire one (1) year from the approval date and are invalid unless renewed. The Executive Director notifies the registrant at least one month before expiration. Renewal must be filed on or before the expiration date and explain any changes. If not timely filed, the developer must submit a new application to reinstate.

• ✓Registration expires one (1) year from the date of approval
• ✓Renewal must be filed on or before the expiration date and explain changes
• ✓Late renewal requires filing a new application to reinstate

Materials advertising or promoting courses designed to meet T.C.A. § 62-13-303 requirements must be approved in advance and be factually supported.

• ✓No promotional/advertising materials may be used without advance Commission approval
• ✓All statements or claims in such materials must be factually supported

A broker who acts as a closing agent must provide copies of the closing documents to each customer or client.

• ✓If a broker acts as closing agent, the broker must provide copies of the closing documents to each customer or client

Initial applicants must submit electronic fingerprints at their own expense for a TBI/FBI criminal background check. The rule defines who counts as an 'initial applicant' and consequences of unclassifiable prints.

• ✓Initial applicants must submit a complete, legible set of fingerprints electronically for a background check under T.C.A. § 62-13-303
• ✓Fingerprinting costs and processing fees are the applicant's responsibility
• ✓'Initial applicants' also include former licensees reapplying for reissuance and persons who previously held (but no longer hold) an affiliate broker license applying for a broker license — but NOT those whose affiliate license is merely inactive or retired
• ✓The Commission may refuse to issue a license if prints are unclassifiable; applicant pays TBI/FBI resubmission fees

Fees under the Time-Share Act are: $750 to register a time-share program or vacation club; $500 to renew; and $250 for a request for exemption from registration. These fees are not prorated and are not refundable.

• ✓Registration fee is $750; renewal fee is $500; exemption request fee is $250
• ✓Fees are neither prorated nor refundable

Credit will not be awarded where a course duplicates content for which credit was previously received, limited to duplication within the same renewal period.

• ✓No credit is awarded for duplicated or repeated course content
• ✓This restriction applies only to duplication within the same renewal period

Brokers and affiliate brokers must fully disclose their true position before acquiring an interest in listed property, and licensees must identify themselves as licensees when buying or selling for themselves.

• ✓No broker/affiliate broker may purchase or acquire (directly or through a third party) an interest in property listed with them or their company without first making full disclosure of their true position to the owner or prospective purchaser
• ✓After acquiring a personal interest, the broker must fully disclose their true position to prospective purchasers who tender offers
• ✓All licensees must identify themselves as a licensee when buying or selling property for themselves

TREC may refuse a firm name that is the same or confusingly similar to an existing firm. There is a structured appeal path, and the applicant bears responsibility for researching legal name restrictions.

• ✓The Commission may refuse to issue a new firm license with a name that is the same or confusingly similar to an existing firm
• ✓A rejected applicant may appeal to the Executive Director, then in writing to the Commission, whose decision is final
• ✓The applicant is responsible for researching legal restrictions; the Commission will not determine ownership, trademark, copyright, or other legal validity

A developer seeking to avoid registering a time-share program for property located outside Tennessee, relying on the 'no-offering' provision of T.C.A. § 66-32-102(7), must submit a request for exemption accompanied by the project's public offering statement and a letter or certificate of registration from the jurisdiction where the property is located.

• ✓Exemption request applies to out-of-state property under the 'no-offering' provision
• ✓Request must include the public offering statement and a certificate of registration from the property's jurisdiction

Non-refundable application fees are charged before a course is reviewed, based on hourly credit, with an additional fee per instructor.

• ✓Courses up to 8 hours: $10; 9–30 hours: $25; over 30 hours: $50
• ✓An additional $25 fee is required for each course instructor
• ✓Fees are non-refundable and paid before review

• A. Retains full THRA exemption status because single-family homes are categorically excluded from the THRA's coverage.
• B. Is subject to the THRA's anti-discrimination provisions and cannot instruct the agent to discriminate, because use of a licensee removes the owner-exemption that might otherwise apply. ✓ Answer
• C. May lawfully restrict buyers by religion or national origin as long as the restriction is disclosed in the listing agreement.
• D. Is exempt from the THRA if the home is the owner's primary residence, regardless of whether a licensee is used.

• A. It is not legally significant unless the property manager puts the rejection reason in writing.
• B. It can serve as direct evidence of discriminatory intent even if the property manager later claims a neutral business reason for the rejection. ✓ Answer
• C. It is only actionable if the applicant can also prove the complex has a statistically measurable racial imbalance among current tenants.
• D. It constitutes defamation rather than housing discrimination and must be pursued through a separate legal action.

• A. An accommodation is reasonable only if it costs nothing to the housing provider and requires no change to existing rules or policies.
• B. An accommodation is per se reasonable whenever a tenant provides a physician's written letter, regardless of the burden it places on the housing provider.
• C. An accommodation is reasonable if it does not impose an undue financial or administrative burden on the housing provider and does not fundamentally alter the nature of the housing program. ✓ Answer
• D. An accommodation is reasonable only if it is explicitly listed in TREC's published administrative rules as an approved modification.

• A. Permissible under Tennessee law as long as the lender applies the same neighborhood criteria to all applicants regardless of the applicant's own race.
• B. Prohibited only by federal law but not independently addressed by any Tennessee statute.
• C. Prohibited under the Tennessee Human Rights Act as a form of discriminatory financing, and the licensee has an obligation under TREC rules not to facilitate or participate in such conduct. ✓ Answer
• D. Permissible because lenders are exempt from the THRA's housing discrimination provisions, which apply only to sellers and landlords.

• A. Any prior criminal conviction, regardless of when it occurred or its nature, is a lawful basis to deny housing under the THRA without further analysis.
• B. Blanket policies excluding all applicants with any criminal record may constitute unlawful discrimination if they have a disparate impact on a protected class and are not narrowly tailored to a legitimate safety concern. ✓ Answer
• C. The THRA explicitly lists prior criminal history as a protected class, making any denial based on criminal history automatically unlawful.
• D. Only federal law, not the THRA, governs how criminal history may be used in tenant screening decisions in Tennessee.

• A. The new owner takes the property subject to the obligation to return the deposit, and the selling landlord must transfer the deposit to the new owner or return it to the tenant ✓ Answer
• B. The deposit is automatically released to the tenant upon the sale of the property
• C. The original landlord retains the deposit because the obligation ends when ownership transfers
• D. The deposit is held in escrow by the closing attorney until the current lease expires