How to Get a Tennessee Real Estate License
Jay Gallagher
Real Estate Broker (Advice from an agent like you, not some tech nerd who never sold a home!)
This is a Step-by-Step guide on how to get your Tennessee Real Estate License. No matter where you live, from Memphis to Chattanooga or Knoxville to my favorite town, Nashville, or anywhere in between, becoming a real estate agent may be the best decision you ever make.
Note: Tennessee issues new licensees an Affiliate Broker License. Most states call this a Real Estate Salesperson License.
All the information, documents and links you’ll need to get your Tennessee real estate Affiliate Broker license are below.
I even answer all your questions (FAQ) at the bottom of the page.
Click on a question to see the answers:
Meet the State Requirements
Learn exactly what the Tennessee Real Estate Commission (TREC) requires before you can get an Affiliate Broker License.
Complete Licensing Education
Tennessee requires only 90 hours of Real Estate Education to get licensed. Find the best Real Estate School for you.
Pass the State Exam
Learn the fastest and easiest way to pass the Tennessee Affiliate Broker License Exam the very first time.
Pick Your Broker
Affiliate brokers need to place their license under a broker’s license. You get to pick the broker you want to work with.
Submit Fingerprints
Tennessee makes it easy to get finger printed through IdentoGo, a private company with lots of locations.
Get a Background Check
It takes a few weeks to process your background check once you submit your fingerprints for review.
Get E and O Insurance
Almost all Affiliate Brokers will get E&O Insurance through their Broker. If not contact your Insurance Agent.
Submit the Application
Make sure you get it right the first time. Check the list, make sure you jumped through all the right hoops and hit send.
Launch Your New Career
Now the fun begins. Learn how to get your new Real Estate Career off on the right foot by doing the right things to get business.
So, How Do You Get Your Tennessee Real Estate License?
1. Meet The State Requirements
To get your Tennessee Affiliate Broker License you must meet the following requirements:
- Must be 18 years of age.
- Have a high school diploma or GED.
- Be a U.S. Citizen or a Qualified Alien legally in the United States.
- Must be fingerprinted and pass a background check.
- Take and Pass the TREC approved Real Estate Course
- Pass both the National and Tennessee Portion of the Real Estate Exam
- Have proof of Errors and Omissions Insurance.
2. Complete Pre-Licensing Education
The Tennessee Real Estate Commission requires everyone seeking an affiliate broker license to complete a total of 90 hours of real estate education. 60 of those hours must cover the topic of real estate principles/fundamentals and must be completed in order to qualify to take the licensing exam with PSI.
The remaining 30 hour “Course for New Affiliates” must be completed before a license will be issued. Most Pre-Licensing schools include all 90 hours together in one package.
They have 4 levels of instruction.
I don’t recommend the basic level at all because it doesn’t included the most valuable part, the Real Estate License Practice Tests.
These practice tests actually guarantee you will pass the Real Estate Exam. Just take the practice tests until you consistently score 90 or higher and you are guaranteed to pass the Tennessee Real Estate Exam on your first try. I think these practice tests are the easiest way to ensure you pass.
Proof that the first 60 hours described above has been completed will be forwarded by the school where the education was completed to PSI, the private testing company TREC uses to proctor the exams.
You can’t schedule the exam until the school has provided that information to PSI. The school will also provide you a certificate or letter of course completion that you must submit to TREC with your application for licensure.
3. Pass the Real Estate Exams
Tennessee has two exams you must be pass before you can apply for your Tennessee Real Estate License:
- Real Estate Salesperson National Exam
- Affiliate Broker Tennessee State Exam
PSI offers testing locations nationwide so even out of state applicants will be able to easily find a testing center near them. They even offer an online proctored exam through video.
Passing the Exams is the one thing that worries the most people but if you bought the recommended Pre-Licensing Education that included the Online Practice Tests and took those practice test until you were getting a high grade, then you will pass the PSI exam the first time.
4. Pick a Responsible Broker
All Affiliate Brokers must work under the supervision of a Broker who’s responsible for monitoring their activities. The good news is that you get to pick a broker to place your Affiliate Broker license under.
If you’re a new agent, I recommend you go with one of the big box real estate brokerages. ReMax, Keller Williams and Century 21 are a good place to start. The reason I recommend these brokerages for new agents is because the big box brokerages have training programs in place to help you make the transition from Rookie Agent to seasoned pro.
Make sure you ask your Broker for information about their Errors and Omissions Insurance. You need a copy of an E&O Insurance Policy when you apply for your license.
5. Submit Fingerprints
The Tennessee Real Estate Commission requires fingerprinting to be done for a background check.
You can download the TREC Fingerprinting Instructions here.
You can download the TREC Fingerprinting Policy and Acknowledgement Form here.
TREC uses IdentoGo to collect fingerprints from all applicants.
You can go to the IdentoGo website to schedule a time to be fingerprinted. IndentoGo will send your fingerprints to the Tennessee Bureau of Investigation (TBI) and Federal Bureau of Investigation (FBI) for processing. The report will be sent to TREC too. You submit payment for fingerprint processing directly to IdentoGO. Don’t forget to bring along your identification documents to the appointment with IdentoGO. You can find a list of approved ID docs at the IdentoGo website.
If you live outside of TN or are physically unable to go to a IdentoGO location, you can use IdentoGO’s non-resident card scan service. They can scan a traditional fingerprint card (hard card) and convert it to an electronic fingerprint record. See the IdentoGo website for more details on how to get fingerprinted on your own and submit the hard card for processing.
6. Get a Background Check
The Tennessee Real Estate Commission may deny a license to an applicant who has a prior criminal conviction or a disciplinary sanction imposed by an occupational licensing body even in another state.
Because of the time and expense involved in applying for a license, the Commission allows you to request that the Commission make a preliminary decision on the conviction or the prior disciplinary sanction before you take the required education and examination for license.
You can download the Application For Decision Regarding Prior Criminal Convictions or Disciplinary Sanction Form here.
7. Get Errors and Omissions Insurance
TREC requires proof of Errors and Omissions Insurance with the application. Check with your sponsoring broker and see if you will be covered under their insurance.
If you are covered by your Broker, then get a copy of their proof of insurance and submit that with your application.
Here is a copy of a sample E&O Policy. This is the type of proof you have to upload with your final application.
You can also upload a copy of this Alternative Equivalent E&O Insurance Coverage Form that has been filled out by your Insurance agent.
8. Submit Your Application
TREC has a website portal called the Comprehensive Online Regulatory & Enforcement System for you to submit your Affiliate Broker License Application.
To get your Tennessee real estate license, the following items need to be submitted to the Tennessee Real Estate Commission:
- Complete the online application answering all questions.
- Completed copy of this Eligibility Attestation Form.
- Copy of Proper ID showing Citizenship or Legal Status.
- Copy of High School Diploma, GED or equivalent.
- Completion Certificate of the TREC required Pre-Licensing Courses.
- PSI Exam Results showing a passing grade for both exams.
- Proof of Errors and Omissions Insurance. (See Step 7)
9. Launch Your New Real Estate Career!
Now the real fun (and work) begins. The best thing about being a Real Estate Agent is the freedom it gives you. You’re your own boss and you get to decide how to move your real estate career forward.
Books
Continuous learning is the hallmark of all successful agents. Here are some resources to get you going in the right direction.
Below are my best suggestions:
- Best Books to Learn Principles of Success.
- Best Books for Real Estate Agents.
- Best Books for Real Estate Agent Social Media Marketing
Tools
You’ll need some tools to get the job done. At the very least, you’ll need a good Customer Relationship Management (CRM) software and a Real Estate Agent Website.
10. Jay Answers Your FAQs
The best (and worst) thing about being a realtor is the freedom you have. Many agents just work part-time and only do 1-3 transactions a year. Other agents work 60+ hours a week and sell hundreds of homes a year.
The best way to answer the question of how much a Tennessee realtor makes is to show how much you are likely to make per transaction.
The average price of a home in Tennessee is $310,000. Say the average commission per side of the transaction is 5.5% and the average broker/agent split is 15/85. That means you will earn, on average, about $6500 per transaction. Not bad.
Of course this number will vary based on the average cost of real estate in your area, your commission rate and your broker split but that’s a good number to start with. Now you can dial up your income based on how hard and how effectively you work.
The Tennessee Real Estate Commission requires 90 hours of coursework. If you elect to take these courses in a classroom setting, you’ll have to go to a designated place and sit for the entire time.
For this reason, most people take the courses online so they can take the courses at their own pace and any time they wish.
Most people find they can complete the online coursework in a fraction of the 90 hours. A motivated person can complete it in as little as two weeks but most people will take a month or more if they do a little bit every day.
The Tennessee Real Estate Exam is not difficult IF you buy a test prep course.
The best test prep courses include practice tests that you can take over and over again until you know the material. If you can consistently take a practice test and score a 90 or higher, then you are practically guaranteed to pass the actual exam.
If you’re someone who gets nervous and their mind goes blank during testing, then maybe you should wait until your score on the practice tests is consistently 95 or better.
The best brokerage is the one that’s the best fit for you.
Call up a few local brokerages and schedule a time to sit down and talk to them. Discuss things like E&O insurance, commission splits, leads and don’t forget to find out about any desk fees, tech fees or insurance fees.
Remember, if you don’t like the brokerage, you can easily change brokers.
I don’t recommend that you use any brokers CRM or email address because those things are the heart of YOUR real estate business and if your clients information is locked into your broker’s CRM, then it will be harder to make the move. That’s why the tools are “free” or included in a tech fee, to make it difficult for you to leave.
Let’s break it all down.
- Fingerprint/Background check – $39.00
- Pre-licensing Educational courses – $299.00 – $745.00
- Exam Prep Courses – $0.00 – $99.00 – (Some Pre-Licensing Includes Exam Prep)
- Exam costs – $39.00
- Errors and Omission Insurance – $0.00 – $250.00 a year
- Tennessee Application Fee – $91.00
The cost of getting your Tennessee real estate license can vary depending on your situation and your needs. The cost for most agents will be as low as $468.00 to as high as $998.00.
Most agents who follow my recommendations will pay about $528.00
