Tennessee · Real estate exam prep
20 free Tennessee practice questions with no signup required. When you're ready for more, the full RealReady bank has 1,070 questions for the 2026 exam that cover both national principles and Tennessee law.
Practice
Use this like a free Tennessee real estate practice test: read the question, commit to an answer, then tap to reveal the correct answer and a plain-English explanation. The ones you miss tell you where to focus next.
Correct: B Commerce and Insurance
TREC operates under the Tennessee Department of Commerce and Insurance, which oversees various regulatory boards including the real estate commission.
Correct: A A principal broker
Tennessee affiliate brokers must work under a principal broker, the supervising broker of a firm. The principal broker oversees the affiliate's activities and ensures compliance with all laws.
Correct: B Errors and omissions insurance
Tennessee requires all licensees to maintain Errors and Omissions (E&O) insurance. E&O specifically covers claims from professional negligence, errors, or omissions in licensed activities.
Correct: B Commingling trust funds with personal funds
Commingling trust funds with personal or business funds is a serious violation under the License Act. Agents must keep client funds separate in a designated trust account.
Correct: A The brokerage firm name as registered with TREC
All advertising must include the name of the brokerage firm as registered with TREC. This applies to all forms of advertising — print, online, signs, and social media.
Correct: A Only by a written bilateral agreement
Under T.C.A. § 62-13-401, a Tennessee agency relationship cannot be assumed, implied, or created by a licensee's conduct or statements. It exists only through a written bilateral agreement, such as a listing agreement or a buyer representation agreement. Delivering an agency disclosure or confirmation form does not by itself create agency, and until an agreement is signed the licensee is a facilitator.
Correct: B Informed written consent from both parties
Dual agency requires informed written consent from both the buyer and seller. Both parties must understand and agree to the agent representing both sides.
Correct: B Only through their principal broker
Tennessee law requires that affiliate brokers receive all compensation through their principal broker. Direct payment from clients, customers, or other brokers is prohibited.
Correct: D The principal broker
The principal broker is responsible for maintaining all transaction records for the firm, including listing agreements, contracts, closing statements, and correspondence.
Correct: B Residential property with 1 to 4 units
The disclosure requirement applies to residential property with 1-4 units. Commercial property and larger multifamily buildings are not covered by this act.
Correct: C In a separate, federally insured escrow or trust account
Under TREC Rule 1260-02-.09, each principal broker must hold trust money in a separate escrow or trustee account, in the name of the firm, at a federally insured institution. Tennessee does not require the bank to be located in Tennessee. What matters is that the account is separate and the funds are never commingled with personal or business funds.
Correct: D Prohibited by TREC rule
Net listings are prohibited in Tennessee. TREC Rule 1260-02-.07 states that no broker or affiliate broker shall accept or enter a listing based on a 'net price.' Net listings create a conflict of interest because the broker keeps everything above the seller's net figure, so Tennessee bans them outright rather than merely discouraging them.
Correct: B No, Tennessee does not mandate specific forms
Unlike Texas, Tennessee does not require state-mandated contract forms. The Tennessee Association of Realtors (TAR) publishes standard forms, but their use is voluntary.
Correct: D No, Tennessee is an attorney-optional state
Tennessee is an attorney-optional state. Closings can be conducted by title companies, attorneys, or other closing agents. Attorney involvement is recommended but not mandatory.
Correct: D 25% of appraised value
Tennessee assesses residential and farm property at 25% of appraised value. Commercial/industrial is 40%, and public utility is 55%. The tax rate is then applied to this assessed value.
Correct: B Broker, affiliate broker, timeshare, acquisition
Tennessee issues four license types: Broker, Affiliate Broker, Timeshare Salesperson, and Acquisition Agent. All four fall under TREC's regulatory authority.
Correct: B The license cannot be renewed
E&O insurance is mandatory — no license can be issued or renewed without proof of coverage. A lapse in coverage means the licensee cannot legally practice until coverage is restored.
Correct: C Grounds for TREC disciplinary action
Paying referral fees to unlicensed persons is expressly listed as grounds for discipline under T.C.A. § 62-13-312. The amount and disclosure do not change this prohibition.
Correct: C This is a prohibited blind ad
A 'blind ad' omits the firm name, which is prohibited in Tennessee. All ads must identify the brokerage firm, even when the affiliate broker's name also appears.
Correct: B Facilitator
Tennessee calls this role a 'facilitator' (equivalent to transaction broker in other states). A facilitator assists with paperwork and showings but does not represent either party.
The RealReady app has all 1,070 questions covering both national real estate principles and Tennessee-specific law. The full app also includes:
Unlike other real estate prep apps, we don't cut off access or charge a monthly subscription fee. It's a one-time $17.99, and it's yours forever.
About the exam
The Tennessee real estate affiliate broker exam trips up plenty of first-time candidates. The Tennessee Real Estate Commission (TREC) scores the national and Tennessee state portions separately, so a strong national score won't rescue a weak state score. That gap on the state section is why Tennessee-specific preparation matters more than another round of national review.
The Tennessee state portion leans on the Tennessee Real Estate Broker Act of 1973, the designated agent and facilitator brokerage relationships that Tennessee defines by statute, the Tennessee residential property condition disclosure, the Real Estate Education and Recovery Account, the errors and omissions insurance every licensee must carry, and the trust and escrow rules TREC enforces. None of that looks like the material a candidate in a neighboring state studies. A generic real estate practice test won't cut it. You need Tennessee-specific practice questions.
FAQ
The Tennessee affiliate broker exam has 120 scored questions, split into an 80-question national portion and a 40-question Tennessee state portion. PSI also mixes in 5 to 10 unscored experimental questions that don't count toward your result. You get 240 minutes in total, 160 for the national portion and 80 for the state portion.
You need 70 percent on each portion, and the two are scored separately. That works out to 56 of 80 correct on the national portion and 28 of 40 on the state portion. You have to pass both to get licensed, so a high score on one portion doesn't make up for falling short on the other.
PSI charges $63 to sit both portions of the affiliate broker exam. If you only need to retake a single portion, it's $37 for the national portion or $26 for the state portion. After you pass, Tennessee's initial affiliate broker license fee is $91, and affiliate broker is the entry-level license the state issues.
240 minutes in total. PSI gives you 160 minutes for the 80-question national portion and 80 minutes for the 40-question state portion, plus up to 15 minutes for an introductory tutorial that doesn't count against your testing time. Each portion is timed and scored on its own, and your result appears on screen as soon as you finish.
The Tennessee Real Estate Affiliate Broker Examination is administered by PSI for the Tennessee Real Estate Commission (TREC). You register and schedule your exam date through PSI.
Plenty of first-time candidates pass, but the exam earns its reputation, and the state portion is where people stumble. The national portion is manageable for most candidates who actually studied. The state portion catches people off guard, because Tennessee's brokerage-relationship rules, disclosure requirements, and the way the Real Estate Commission is structured don't match what national prep material teaches. Honest practice on Tennessee-specific questions is usually the difference between passing the first time and paying to retake a portion.
The 80-question national portion covers general real estate principles like agency, contracts, financing, property ownership, valuation, and fair housing. The 40-question Tennessee state portion focuses on the duties and powers of the Real Estate Commission, Tennessee licensing and advertising rules, broker and affiliate relationships, the handling of documents and trust and escrow funds, agency and disclosure issues including designated agents and facilitators, and special areas like timeshare and property management. The state-specific material carries more weight than its share of questions suggests, since it's the part most candidates have never seen before.
After you finish your 60 hours of pre-license coursework, the highest-leverage move is grinding through Tennessee-specific practice questions with honest feedback on every miss. National practice tests help with the 80 national questions but won't catch you on Tennessee's brokerage and disclosure rules. The RealReady app gives you the full Tennessee question bank, plus a missed-question mode and per-category progress tracking so you can drill your weak spots. Most users study 30 to 60 minutes a day for two to four weeks before sitting the exam.
The 20 Tennessee practice questions on this page are free, no account or signup needed. Unlocking the rest of the Tennessee bank is a single in-app purchase you pay once and own, with no recurring charge and no time limit on access.
Yes. RealReady has a dedicated Tennessee question bank built for the Tennessee real estate exam, covering the national principles every candidate sees plus the Tennessee law that trips people up, like the Tennessee Real Estate Broker Act of 1973, the designated agent and facilitator relationships, and the Real Estate Education and Recovery Account.
No. RealReady is exam practice, not a pre-license course, so it doesn't count toward Tennessee's required pre-license education hours. Use it after or alongside your coursework to drill realistic practice questions and find your weak spots before exam day.
