TN REAL ESTATE COMMISSION: Rules, Requirements & How to Get a License

TN Real Estate Commission
Compass real estate

Obtaining your Tennessee Real Estate Commission License is the first step toward becoming a Tennessee real estate affiliate broker. This procedure can now be completed almost entirely online. The Tennessee real estate commission license exam must still be taken in person, however the rest of the process can be completed fully online! This article outlines the process to get your TN Real Estate Broker commission License in an easy to understand, step-by-step manner. You will also learn some TN real estate commission license rules and renewal requirements, lookup a license and also verify one. 

What is TN Real Estate Commission?

The Tennessee Real Estate Commission, which was established in 1951, licenses, registers, and supervises real estate brokers and affiliate brokers, real estate firms, rental location agents, time-share salespeople and developments, vacation clubs, and vacation lodging services.

The Commission also makes rules governing professional behavior and practice standards.

The Tennessee Real Estate Commission’s objective is to safeguard the public by establishing and enforcing minimum requirements for applicants and licensees, providing effective professional education to licensees, and enforcing professional conduct.

TN Real Estate Commission License Rules and Requirements

When it comes to any setup, there are always regulations and requirements that must be met in order for a process to take place, and the same is true for the Tennessee real estate commission. They are as follows:

  • You must be at least 18 years of age.
  • If you have a felony or misdemeanor conviction involving theft of money, services, or property, you are not eligible to apply. You’ll need to wait for at least 2 years from your incarceration, probation, parole, or conviction.
  • You must have completed 90 hours of affiliate broker Pre-Licensing real estate education.
  • You must hold an active license that meets one of the following criteria:
  • 24 months actively licensed, if licensed as an affiliate broker on or before May 12, 1988.
  • 36 months actively licensed, if licensed as an affiliate broker after May 12, 1988.
  • 24 months actively licensed, if the candidate has a baccalaureate degree with a major in real estate.

How Do I Get my Real Estate Commission License in TN?

To become a real estate agent in Tennessee, the Tennessee Real Estate Commission (TREC) requires a few criteria. You must be at least 18 years old, have a high school diploma (or equivalent), and successfully complete a background check. If you match the requirements, you can proceed to the following steps:

Step #1: Meet the Basic Application Requirements

As previously stated, you must be at least 18 years old and a high school graduate in order to pursue this vocation. Some standards are subject to change, so check the Tennessee Real Estate Commission website for the most up-to-date information.

Step #2: Complete  the Required Pre-Licensing Education

The Tennessee Real Estate Commission (TREC) requires new affiliate candidates to complete Pre-Licensing coursework. These are a variety of courses that can be completed in 6 months. These classes can assist you in preparing for the real estate license exam.

Pre-Licensing courses totaling 90 hours include:

  • 60-Hour Basic Principles of Real Estate Course. You must comply with the required hours and pass the course exam with a 75% minimum passing score.
  • 30-Hour Course for New Affiliates. This course for new affiliates also requires you to pass its final exam with at least a passing score of 75%.

Step #3: Pass the Tennessee Real Estate License Exam

Register and schedule your Tennessee Affiliate Broker Licensing Examination with PSI Testing Services after completing the Pre-Licensing course for new affiliates.

To register, you must submit an application to the Tennessee Real Estate Commission detailing your qualifications, education, and experience. This procedure may take up to four weeks. Pass the Tennessee real estate license exam with a minimum score of 70%. If you do not pass the exam on your first attempt, you can retake it, but you will have to pay an additional exam cost.

Step #4: Submit to a Background Check

At the exam center, have your application photo taken. You will also be subjected to an eligibility verification check and electronic fingerprinting for a background check by a private organization contracted by the Tennessee Real Estate Commission. This will result in further charges.

Step #5: Sign with a Sponsoring Broker

To begin working as a licensed salesman, you must find a sponsoring broker within 6 months of passing the exam. Your sponsored broker will oversee you and provide you with the knowledge you need to adjust to your new role.

Step #6: Get a Proof of Errors and Omissions Insurance

All current licensees are required by the state to obtain errors and omissions insurance. This is required for you to continue practicing. This is frequently covered by your brokerage.

Step #7: Apply for your TN Real Estate License

For detailed and up-to-date information on the application procedure, see TREC’s website. Completing application forms and submitting identification, proof of high school graduation, proof of completion of your 60-hour and 30-hour pre-licensing education courses, proof of E&O insurance coverage, and payment of all fees are required.

How Much Does it Cost to Become a Real Estate Agent in TN?

The initial licensing application fee is $91. You must spend $91.00 to advance from a Tennessee affiliate broker to a full-fledged real estate broker.

The license renewal fee is $75.00 every two years. Courses lasting less than 8 hours cost $10.00, 9-30 hours cost $25.00, and courses lasting more than 30 hours cost $50.00.

For additional information about the current list of fees, please visit TREC’s official website.

How Long Does It Take to Get a Real Estate Commission License?

When you decide to become a Tennessee real estate agent, you’re probably excited and eager to get started right away. Before you leave your current job, you should know how long the procedure will take. Here’s an example of a typical timeline:

  • 2 to 8 weeks to complete your 90-hour Tennessee pre-licensing course
  • 1 to 2 weeks for real estate school to submit Completion Certificate to the state so you’ll be approved to take the real estate examination
  • 1 to 2 weeks to get your state real estate exam scheduled
  • 3 to 6 weeks to get fingerprints made and a background check approved
  • 1 to 3 weeks to interview and select a real estate brokerage
  • 1 to 2 weeks for the real estate commission to approve your license application

While this timeframe may appear onerous, there are a few ways to speed things up. To begin, enrolling in an online course is the best option. You can learn at your own pace online instead of attending regular in-person classes two to four times each week. We also strongly advise starting the background check procedure as soon as you begin your study.

This is frequently the most significant stumbling block for many aspiring agents. We would also consider interviewing brokerages while finishing your real estate course so that you are ready to hang your license with a broker as soon as you pass the state exam. Overall, becoming a real estate agent in Tennessee is definitely doable in 8 to 10 weeks.

How Do I Renew My TN Real Estate Commission License?

Don’t be concerned. You don’t have to worry about the renewal amd other requirements of your TN real estate commission license on a yearly basis because you receive a year off every other year. The renewal and other requirements they might need from you for TN real estate license is necessary every two years. Check your license for the expiration date.

If you have a Tennessee real estate license, you must renew it every two years in order to continue working legally. This holds true whether you are a real estate affiliate broker or a broker.

The cost of renewing your Tennessee real estate license may vary depending on whether you renew on time — or face a late penalty fee — and whether you are a broker or a real estate agent.

TN Real Estate Renewal Cost

The overall cost of your TN Real Estate License Renewal will be determined by various requirements and factors, including how you file and whether you must pay a penalty fee:

StatusReal Estate Affiliate BrokerReal Estate Broker
Renewal Cost Online$75$75
Late Penalty Fee (per month after expiration)$50 (for first 120 days) $100 (for 121-365 days)$50 (for first 120 days) $100 (for 121-365 days)
Total Cost$75 – $1175$75 – $1175

You’ll also need to factor in the expense of purchasing a real estate CE course, which is a legal requirement in Tennessee.

Tennessee Real Estate Continuing Education

To renew your Tennessee real estate license, you must satisfy the following CE requirements.

#1. First Renewal

For your broker license, the Tennessee Real Estate Commission (TREC) requires 120 hours of post-licensing study. These must be completed within the first three years of becoming licensed.

This requirement does not apply to affiliate brokers, who must instead complete the normal CE.

#2. Second and Subsequent Renewals

Every two years, affiliate brokers and brokers must complete 16 hours of TREC-approved CE courses, including six hours on the TREC Core course.

Whether you are an affiliate broker or a broker, you must finish the remaining CE hours by completing optional courses. These might be general real estate courses or specific courses such as:

  • Advocating for Short-Sale Clients
  • Assistance Animals and Fair Housing
  • Document Diligence: Safeguarding Your Transactions

#3. Inactive Tennessee Real Estate Agents

Licensees with an inactive status in Tennessee are not required to complete their CE requirements every two years.

Keep in mind that an inactive license will prevent you from engaging in any real estate sales or brokerage activities.

You will be allowed to renew your license for up to one year after its expiration date, though the specific requirements will vary depending on how much time has gone.

Tennessee Real Estate Commission License Renewal and Requirements

You will be able to renew your Tennessee real estate license and complete all other procedures online. There is no in-person or mail delivery service.

The Tennessee Comprehensive Online Regulatory & Enforcement System allows you to renew your real estate license online. If this is your first time renewing online, you must first register.

We recommend finishing your CE training at least ten days before your license expires. This ensures that it has adequate time to be processed.

What’s the Average Tennessee Real Estate Commission?

According to our survey of local agents, the average real estate commission in Tennessee is 5.44%, which is higher than the national average.

What Commission Do Most Realtors Charge?

The typical standard commission is 6% of the purchase price of a home, divided equally (3%) between the buyer’s and seller’s agents. However, the average proportion has been decreasing over the years, and according to Clever, the average Realtor commission is 5.37 percent.

What Is the Average Pay for a Realtor in Tennessee?

In Tennessee, the average annual pay for a real estate agent is $33,500. Real estate agent wages in Tennessee can range from $16,500 to $220,000 and are determined by a variety of criteria such as skills, experience, company, bonuses, gratuities, and more.

Do Buyers Pay Realtor Fees in TN?

In Tennessee, home sellers pay real estate commission fees for both agents participating in a transaction out of the final sale revenues. Offering to cover the buyer’s agent’s commission is a great way to entice agents to show your home to their clients.

What Does the Tennessee Real Estate Commission Do?

The Tennessee Real Estate Commission, which was established in 1951, licenses, registers, and supervises real estate brokers and affiliate brokers, real estate firms, rental location agents, time-share salespeople and developments, vacation clubs, and vacation lodging services.

Who Pays Closing Costs in TN?

Someone has to pay the closing costs, and that person is usually the buyer. As a buyer, you can save money by asking your realtor to arrange a deal with the seller to have them pay a portion of your closing fees. The vendor is not required to do so, but it’s always worth a shot.

How Much Are Closing Costs for Buyers in Tennessee?

In Tennessee, purchasers’ closing costs range between 2% and 5% of the home’s agreed value. While the sellers are anticipated to pay between 6 and 10% of the buying price, including the realtor fee.


We hope that our step-by-step guide to obtaining a Tennessee real estate license will inspire you and get you started on a rewarding career path. Goodluck!


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