Educational Resources: Take Tennessee Real Estate Sample Tests, Application Steps and Tips

One of the most important tasks for anyone seeking a TN real estate license is taking and passing the state’s real estate exam.

Real Estate Exam Structure

The Tennessee real estate test is divided into two sections. Whether you are taking one or both, the fee is $39 to take or retake the exam.

Before you can register, you must complete the required real estate coursework and have your school submit verification to PSI. Once PSI receives this information, they will send you a postcard or email with instructions on how to schedule your exam.

All exam fees are non-refundable and non-transferable but are good for a full year if you need to reschedule after paying. The exam can be taken at seven PSI locations across the state.¹

Exam rules are strict and can be found in the Candidate Bulletin.¹ This document will tell you what kind of identification to bring with you, what forms or paperwork you might need, and what you may and may not bring into the testing center.

Section one of the exam focuses on national real estate content. It contains 80 questions.

Section 2 covers state real estate content and contains 40 questions. Each section requires a minimum passing score of 70 percent.¹

Real Estate Pre-Licensing Exam Content

The first section of the real estate pre-licensing exam covers the following 11 topics:¹

• Real Estate Calculations
• Practice of Real Estate
• Transfer of Title
• Property Management
• Property Disclosures
• Agency
• Financing
• Contracts
• Valuation
• Land Use Controls
• Property Ownership

The second section of the real estate test covers the following 9 topics:¹

• Duties and Powers of the Real Estate Commission
• Licensing Requirements
• Agency and Disclosure Issues
• Special Areas of Practice
• Other Improper Activities and Consumer Protection
• Broker/Affiliate Relationships
• Handling of Trust/Escrow Funds
• Handling of Documents and Record Keeping
• Advertising and Marketing

Sample Questions for the Tennessee Real Estate Exam

PSI offers a selection of sample questions for the TN real estate exam in the Candidate Information Bulletin.¹ All of the following sample questions are sourced directly from this document:

A. Which of the following interests in property is held by a person who is granted a lifetime use of a property that will be transferred to a third party upon the death of the lifetime user?

1. A life estate
2. A remainder estate
3. An estate for years
4. A reversionary estate

B. Which of the following statements BEST identifies the meaning of the term, “rescission of a contract”?

1. A ratification of a contract by all parties.
2. A return of all parties to their condition before the contract was executed.
3. A transfer or assignment of a particular responsibility from one of the parties to another.
4. A review of the contract by the legal counsel of either party that may result in a cancellation without penalty or further obligation.

C. Which of the following clauses in a mortgage allows the lender to demand loan repayment if a borrower sells the property?

1. Defeasance
2. Prepayment
3. Acceleration
4. Alienation

D. How much cash MUST a buyer furnish in addition to a $2,500 deposit if the lending institution grants a 90% loan on an $80,000 property?

1. $5,500
2. $6,975
3. $7,450
4. None of the above

E. Which of the following single-family residences would get the MOST accurate appraisal by applying the reproduction cost approach to value?

1. A rental property
2. A vacant property
3. A new property
4. A historic property

Answers to Sample Broker Questions: A: 1; B: 2; C: 4; D: 1; E: 4¹

Process of Submitting Your TN Department of Commerce and Insurance Real Estate License Application (5 Steps)

Submitting a real estate license application to the TN Department of Commerce is surprisingly simple, and requires just five basic steps.

How To Submit Your Real Estate License Application

1. Complete your pre-licensing coursework and wait for the school to submit your certification to PSI.
2. Schedule your exam based on instructions from PSI. Pass the exam with a score of 70 or higher.
   • PSI will give you your real estate license application.
3. Get your fingerprints taken electronically.
4. Fill out the application. Attach proof of high school graduation; proof of real estate school completion; and proof of Errors and Omissions insurance coverage.
5. Submit the application and application fee online at CORE.TN.GOV.²

Costs and Dues To Join the TN Department of Commerce and Insurance Association of Real Estate Agents

There is a $91 application fee to submit an application for a real estate license to the Tennessee Department of Commerce and Insurance.³ This is on top of the $39 fee for the real estate exam, which is payable straight to PSI.

Licensed real estate professionals should be prepared to pay a $75 renewal fee every two years, with a $50 late fee each month the fee is late up to 120 days, increasing to $100 a month after that time.

Application for National Association of Realtors® (NAR) Membership (At Your Discretion)

The National Association of REALTORS® (NAR) is a professional organization that supports real estate agents in their careers. Membership is completely voluntary and is not required as part of the TN licensing process.

To join NAR, an agent must first join a local real estate association. By joining a local association, the agent automatically becomes a member of both the Tennessee Association of REALTORS® and the NAR.⁴

By joining these groups, an agent can take advantage of numerous benefits, including continuing education and professional training, networking, community outreach opportunities, and access to industry data and listing services. Members are also permitted to use the term Realtor®, which is a registered trademark of NAR and cannot be used by non-members.

There are 20 local real estate associations in Tennessee, and each has its own membership process and dues requirement.⁵ As an example, the Greater Nashville REALTORS® charge a $200 application fee and dues of $143.50 per year.⁶

What’s the Average Timeline for the Real Estate Application?

When you’re excited about a new career, it’s only natural to want to get started as quickly as possible. When it comes to becoming a licensed real estate agent in TN, much of the timeline is flexible, and some parts of it are up to the individual applicant.

How Long Does Real Estate School Take?

The pre-licensing coursework for TN real estate licensing consists of two parts. The first is a 60-hour real estate program that must be completed before taking the state real estate exam.¹

The second is a 30-hour New Affiliate program that can be completed anytime after completing the 60-hour program, but before submitting the application for a license.

If you’re in a hurry, find a 60-hour program that lets you work online at your own pace, which could take as little as a few weeks. If you need more in-depth teaching and need to work around your job, you can find programs lasting several months that stretch the material over a longer period.

Those looking to move to licensing as quickly as possible should begin studying for the real estate exam and scheduling the test while simultaneously taking the 30-hour course. Others may wish to complete both courses before scheduling and studying for the exam.

How Long Does the TN Real Estate Exam Take?

The TN real estate exam takes just four hours to complete.¹ This includes 160 minutes for the first section and 80 minutes for the second section.

Exam takers receive their scores immediately upon completion of the test. Plan to arrive at least 30 minutes early for your exam so you have time to settle in before the testing period begins.

The exam starts with a 15-minute practice session, so budget around 5 hours when planning how long you will be in the testing center.

How Long Does the TN Real Estate Application Take?

Once you’ve completed preliminary classes, and testing and undergone electronic fingerprinting, filling out the application for a real estate license should take mere hours. The application can be completed at the Real Estate Commission’s Comprehensive Online Regulatory and Enforcement System or CORE.²

Once you’ve submitted an application, you can also check CORE to review the status of your license, update personal information, or log continuing education credits.