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Tennessee Real Estate Salesperson — Requirements & Free Practice

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Licenses, application pathways and examination requirements

Each license and applicant pathway has its own requirements and exemptions. Choosing practice questions does not determine your eligibility.

Affiliate Broker

Ordinary Tennessee individual real-estate salesperson license, officially called Affiliate Broker; retired status and initial retired issuance use this same license identity.

Licensing authority: Tennessee Real Estate Commission · Application information

Restoration of erroneous insurance suspension or revocation
No examination is required for this applicant pathway.
License Status
Prove insurance suspension or revocation was erroneous and qualifying coverage was actually obtained, maintained or renewed.
Restoration
Commission must immediately reinstate to the date of suspension.

Official no-examination sources

Effective from 2026-09-22.

Reissuance after insurance revocation
Affiliation
Principal broker must sign the application, attest to honesty and trustworthiness, and undertake active supervision and training.
Application
Apply to TREC through CORE, submit required documentation and fees, and obtain issuance before practicing.
Character
Satisfactory proof of honesty, trustworthiness, integrity and competence; criminal history and disciplinary matters are reviewed under Rule 1260-01-.01, including required disclosures and Commission appearance where applicable.
Conditional Licensing
The Board may impose applicant-specific conditions or restrictions when evaluating criminal history; these are conditions of licensure, not separate exams.
Eligibility Verification
Submit the Eligibility for Entitlements Verification form.
Fingerprints
Initial applicants must submit electronic fingerprints for the TBI/FBI background check, pay processing costs, and submit their receipt and ORI number; former licensees required to reapply are initial applicants.
Insurance
Provide qualifying errors-and-omissions insurance for an active license.
License Status
License revoked following more than one year of insurance suspension.
Minimum Age
At least eighteen years old when applying for licensure.
Passing Score Age
T.C.A. 62-13-303(d) requires application within one year of passing; otherwise retake and pass, unless the Commission waives this requirement.
Prelicense Education
Complete sixty classroom hours before the licensing examination and the thirty-hour Course for New Affiliates before original issuance. Rule 1260-05-.03(6) permits the specified real-estate degree/transcript or law-degree real-property/contracts/agency study to satisfy the sixty-hour course.
Reapplication
Reapply and pay application and insurance-lapse penalties; current education and required examinations apply unless waived by the Commission.
Secondary Education
High-school degree or state-approved high-school equivalency credential.
Waiver
T.C.A. 62-13-112(l)(4) and Rule 1260-01-.16(1)(b) authorize reexamination or education waiver and reasonable reinstatement conditions.
Reinstatement after insurance suspension
No examination is required for this applicant pathway.
Fees
Within thirty days T.C.A. 62-13-112(k)(1) requires reinstatement without a fee; later reinstatement requires the applicable statutory and regulatory penalty schedule.
Insurance
Establish compliant insurance.
License Status
License suspended for missing qualifying E&O insurance, not yet revoked.

Official no-examination sources

Effective from 2026-09-22.

High school senior program
Affiliation
Principal broker must sign the application, attest to honesty and trustworthiness, and undertake active supervision and training.
Application
Apply to TREC through CORE, submit required documentation and fees, and obtain issuance before practicing.
Character
Satisfactory proof of honesty, trustworthiness, integrity and competence; criminal history and disciplinary matters are reviewed under Rule 1260-01-.01, including required disclosures and Commission appearance where applicable.
Conditional Licensing
The Board may impose applicant-specific conditions or restrictions when evaluating criminal history; these are conditions of licensure, not separate exams.
Eligibility Verification
Submit the Eligibility for Entitlements Verification form.
Fingerprints
Initial applicants must submit electronic fingerprints for the TBI/FBI background check, pay processing costs, and submit their receipt and ORI number; former licensees required to reapply are initial applicants.
Insurance
Provide qualifying errors-and-omissions insurance for an active license.
Minimum Age
At least eighteen years old when applying for licensure.
Passing Score Age
T.C.A. 62-13-303(d) requires application within one year of passing; otherwise retake and pass, unless the Commission waives this requirement.
Prelicense Education
Complete sixty classroom hours before the licensing examination and the thirty-hour Course for New Affiliates before original issuance. Rule 1260-05-.03(6) permits the specified real-estate degree/transcript or law-degree real-property/contracts/agency study to satisfy the sixty-hour course.
Program Course Timing
The high-school program page asks for both the sixty-hour principles course and thirty-hour Course for New Affiliates before examination, although the ordinary statute and affiliate-broker page require the latter before issuance.
Program Eligibility
The Board program is for high-school seniors graduating in 2026, with Kaplan scholarship courses completed within 100 days of enrollment. The program provides prelicense education and preparation for the same national and Tennessee exams; it does not waive the statutory issuance age or diploma requirements.
Secondary Education
High-school degree or state-approved high-school equivalency credential.
Initial examination
Affiliation
Principal broker must sign the application, attest to honesty and trustworthiness, and undertake active supervision and training.
Application
Apply to TREC through CORE, submit required documentation and fees, and obtain issuance before practicing.
Character
Satisfactory proof of honesty, trustworthiness, integrity and competence; criminal history and disciplinary matters are reviewed under Rule 1260-01-.01, including required disclosures and Commission appearance where applicable.
Conditional Licensing
The Board may impose applicant-specific conditions or restrictions when evaluating criminal history; these are conditions of licensure, not separate exams.
Eligibility Verification
Submit the Eligibility for Entitlements Verification form.
Fingerprints
Initial applicants must submit electronic fingerprints for the TBI/FBI background check, pay processing costs, and submit their receipt and ORI number; former licensees required to reapply are initial applicants.
Insurance
Provide qualifying errors-and-omissions insurance for an active license.
Minimum Age
At least eighteen years old when applying for licensure.
Passing Score Age
T.C.A. 62-13-303(d) requires application within one year of passing; otherwise retake and pass, unless the Commission waives this requirement.
Prelicense Education
Complete sixty classroom hours before the licensing examination and the thirty-hour Course for New Affiliates before original issuance. Rule 1260-05-.03(6) permits the specified real-estate degree/transcript or law-degree real-property/contracts/agency study to satisfy the sixty-hour course.
Secondary Education
High-school degree or state-approved high-school equivalency credential.
Initial retired
Affiliation
The Board FAQ permits an Initial Retired Affiliate application for an otherwise ready applicant who has not found a firm. The license is issued in retirement; practice is prohibited until reactivation.
Application
Apply to TREC through CORE, submit required documentation and fees, and obtain issuance before practicing.
Character
Satisfactory proof of honesty, trustworthiness, integrity and competence; criminal history and disciplinary matters are reviewed under Rule 1260-01-.01, including required disclosures and Commission appearance where applicable.
Conditional Licensing
The Board may impose applicant-specific conditions or restrictions when evaluating criminal history; these are conditions of licensure, not separate exams.
Eligibility Verification
Submit the Eligibility for Entitlements Verification form.
Fingerprints
Initial applicants must submit electronic fingerprints for the TBI/FBI background check, pay processing costs, and submit their receipt and ORI number; former licensees required to reapply are initial applicants.
Insurance
An active errors-and-omissions policy is not required while retired.
Minimum Age
At least eighteen years old when applying for licensure.
Passing Score Age
T.C.A. 62-13-303(d) requires application within one year of passing; otherwise retake and pass, unless the Commission waives this requirement.
Prelicense Education
Complete sixty classroom hours before the licensing examination and the thirty-hour Course for New Affiliates before original issuance. Rule 1260-05-.03(6) permits the specified real-estate degree/transcript or law-degree real-property/contracts/agency study to satisfy the sixty-hour course.
Retired Status
Retired licenses must still be renewed every two years; continuing education and firm affiliation are not required while retired.
Secondary Education
High-school degree or state-approved high-school equivalency credential.
Reactivation of lapsed retired license
No examination is required for this applicant pathway.
Active Requirements
Meet active affiliation and applicable E&O conditions before practicing.
Education
Either all classroom hours that would have been required during active status, or an approved thirty-hour continuing education course.
Fees
Pay all back renewal fees and Commission-imposed penalties.
License Status
Licensee in good standing when temporarily retired whose retired license lapsed through nonpayment of renewal fees.

Official no-examination sources

Effective from 2026-09-22.

Reinstatement with medical waiver
Affiliation
Principal broker must sign the application, attest to honesty and trustworthiness, and undertake active supervision and training.
Application
Apply to TREC through CORE, submit required documentation and fees, and obtain issuance before practicing.
Character
Satisfactory proof of honesty, trustworthiness, integrity and competence; criminal history and disciplinary matters are reviewed under Rule 1260-01-.01, including required disclosures and Commission appearance where applicable.
Conditional Licensing
The Board may impose applicant-specific conditions or restrictions when evaluating criminal history; these are conditions of licensure, not separate exams.
Eligibility Verification
Submit the Eligibility for Entitlements Verification form.
Fingerprints
Initial applicants must submit electronic fingerprints for the TBI/FBI background check, pay processing costs, and submit their receipt and ORI number; former licensees required to reapply are initial applicants.
Insurance
Provide qualifying errors-and-omissions insurance for an active license.
License Status
License was not renewed within sixty days because of personal or family health issues.
Medical Evidence
Submit signed doctor statement describing illness and duration, and applicant-signed lapse explanation; Commission decides the medical waiver.
Minimum Age
At least eighteen years old when applying for licensure.
Passing Score Age
T.C.A. 62-13-303(d) requires application within one year of passing; otherwise retake and pass, unless the Commission waives this requirement.
Prelicense Education
Complete sixty classroom hours before the licensing examination and the thirty-hour Course for New Affiliates before original issuance. Rule 1260-05-.03(6) permits the specified real-estate degree/transcript or law-degree real-property/contracts/agency study to satisfy the sixty-hour course.
Secondary Education
High-school degree or state-approved high-school equivalency credential.
Waiver Scope
The medical waiver removes late penalty fees. Renewal fees and all other licensure conditions remain; required examinations after a lapse over one year remain referenced and depend on separate Commission waiver or statutory reactivation eligibility.
Military substantially equivalent license
No examination is required for this applicant pathway.
Eligibility
Rule 1260-01-.20(1) applies to an applicant meeting its literal cross-reference to T.C.A. 4-3-1304(d)(1). The current statute uses (d)(1) for definitions; TREC must determine the individual military applicant’s eligibility and equivalency. No automatic eligibility for an unspecified class of relatives is inferred.
Equivalency
Commission must find the other jurisdiction’s licensing requirements substantially equivalent to Tennessee. The rule then permits issuance on application and fees, without identifying an examination.
Fees
Apply and pay fees required for a regular license of the same type.
Insurance
Meet applicable active-practice insurance and affiliation conditions; acquisition agents retain the statutory insurance exemption.
Other License
Hold the corresponding out-of-jurisdiction individual license and provide the Commission evidence for substantial-equivalency evaluation; no other state examination is referenced as a requirement leaf.

Official no-examination sources

Effective from 2026-09-22.

Renewal after military activation
No examination is required for this applicant pathway.
Military Status
National Guard or reserve member called to active duty whose license expires during activation.
Relief
No late fees or similar renewal act; CE waiver requires duty preventing CE and a waiver request, or evidence that the licensed occupation was performed during military service.
Time Limit
Renew within six months after release from active duty; submit required activation evidence.

Official no-examination sources

Effective from 2026-09-22.

Conversion of military temporary permit
No examination is required for this applicant pathway.
Completion
Complete prescribed additional requirements and provide sufficient proof to TREC.
Eligibility
Rule 1260-01-.20(1) applies to an applicant meeting its literal cross-reference to T.C.A. 4-3-1304(d)(1). The current statute uses (d)(1) for definitions; TREC must determine the individual military applicant’s eligibility and equivalency. No automatic eligibility for an unspecified class of relatives is inferred.
Fees
Apply and pay fees required for a regular license of the same type.
Insurance
Meet applicable active-practice insurance and affiliation conditions; acquisition agents retain the statutory insurance exemption.
Issuance Dates
Full license is issued with the original permit issuance date and expiration as if originally issued then.
Other License
Hold the corresponding out-of-jurisdiction individual license and provide the Commission evidence for substantial-equivalency evaluation; no other state examination is referenced as a requirement leaf.
Permit Status
Holder of the corresponding temporary permit.

Official no-examination sources

Effective from 2026-09-22.

Out of state credentials
Affiliation
Principal broker must sign the application, attest to honesty and trustworthiness, and undertake active supervision and training.
Application
Apply to TREC through CORE, submit required documentation and fees, and obtain issuance before practicing.
Character
Satisfactory proof of honesty, trustworthiness, integrity and competence; criminal history and disciplinary matters are reviewed under Rule 1260-01-.01, including required disclosures and Commission appearance where applicable.
Conditional Licensing
The Board may impose applicant-specific conditions or restrictions when evaluating criminal history; these are conditions of licensure, not separate exams.
Education Review
Commission staff evaluate the ninety-hour education requirement and equivalent education accepted by the jurisdiction of licensure before approving examination eligibility.
Eligibility Verification
Submit the Eligibility for Entitlements Verification form.
Fingerprints
Initial applicants must submit electronic fingerprints for the TBI/FBI background check, pay processing costs, and submit their receipt and ORI number; former licensees required to reapply are initial applicants.
Insurance
Provide qualifying errors-and-omissions insurance for an active license.
Minimum Age
At least eighteen years old when applying for licensure.
National Waiver
Rule 1260-01-.02(2)(b) allows excuse from the uniform-principles portion for another-jurisdiction licensee with an approved examination and sufficient passing score. Worksheet A states: "If the state where you tested creates their own examination, you will be required to take both parts of the Tennessee exam." Other jurisdictions’ examinations and generic ARELLO-accredited evidence remain applicant conditions; no examination of another state is a leaf.
Nonresident
A nonresident applicant must affiliate with a Tennessee-licensed firm and principal broker and submit the Tennessee nonresident consent-to-suits form.
Other License
Applicant holds or has held an affiliate-broker or broker license in another jurisdiction; submit Worksheet A and original certified license history from every jurisdiction, issued within six months and including education, examination source and score.
Passing Score Age
T.C.A. 62-13-303(d) requires application within one year of passing; otherwise retake and pass, unless the Commission waives this requirement.
Prelicense Education
Complete sixty classroom hours before the licensing examination and the thirty-hour Course for New Affiliates before original issuance. Rule 1260-05-.03(6) permits the specified real-estate degree/transcript or law-degree real-property/contracts/agency study to satisfy the sixty-hour course.
Reciprocity
Board Renewal, Reciprocity & Other Resources states: "The Tennessee Real Estate Commission does not offer a reciprocal license at this time." It instead reviews education, national score and experience substitutions.
Secondary Education
High-school degree or state-approved high-school equivalency credential.
Tennessee Examination
All affiliate-broker candidates must pass the Tennessee law section with at least 70 percent. Both currently offered Tennessee-licensing portions remain referenced, with the national-waiver condition recorded.
Reactivation from retirement
No examination is required for this applicant pathway.
Active Requirements
Affiliate with an active firm; restore qualifying E&O insurance where applicable; acquisition agents retain the statutory insurance exemption.
Education
Statutory sixteen classroom hours in approved real-estate courses during the current renewal period before reactivation.
License Status
Holder of a temporarily retired license requests reactivation through CORE, submits TREC 1 and change-of-status fee.

Official no-examination sources

Effective from 2026-09-22.

Reactivation nonretired expired over two years
No examination is required for this applicant pathway.
Education
Complete a Commission-approved thirty-hour continuing education course.
Fees
Pay penalty specified by T.C.A. 62-13-319(a).
License Status
Licensee in good standing whose license has been expired more than two years and was not temporarily retired.
Lower Ranked Demand
Rule 1260-01-.21(3) states: "If a license is expired for more than one (1) year, then that individual must reapply for licensure, meet current education requirements, and pass all required examinations." This demand is recorded as the lower-ranked rule; the statutory course-based reactivation route controls.

Official no-examination sources

Effective from 2026-09-22.

Reapplication after expiration over one year
Affiliation
Principal broker must sign the application, attest to honesty and trustworthiness, and undertake active supervision and training.
Application
Apply to TREC through CORE, submit required documentation and fees, and obtain issuance before practicing.
Character
Satisfactory proof of honesty, trustworthiness, integrity and competence; criminal history and disciplinary matters are reviewed under Rule 1260-01-.01, including required disclosures and Commission appearance where applicable.
Conditional Licensing
The Board may impose applicant-specific conditions or restrictions when evaluating criminal history; these are conditions of licensure, not separate exams.
Discretion
T.C.A. 62-13-319(a) permits waiver of reexamination or additional education or reinstatement on reasonable conditions.
Eligibility Verification
Submit the Eligibility for Entitlements Verification form.
Fingerprints
Initial applicants must submit electronic fingerprints for the TBI/FBI background check, pay processing costs, and submit their receipt and ORI number; former licensees required to reapply are initial applicants.
Implementation Alternative
Board Renewal & Reinstatement states: "In lieu of retesting, licensees that have been expired for more than one (1) year may also take an approved 30-hour T.R.A.C.E. course to reinstate." This waiver/course option is a condition of the examination-involving route.
Insurance
Provide qualifying errors-and-omissions insurance for an active license.
License Status
License expired for more than one year; reapply, satisfy current education and pass currently required examinations, subject to statutory Commission waiver.
Minimum Age
At least eighteen years old when applying for licensure.
Passing Score Age
T.C.A. 62-13-303(d) requires application within one year of passing; otherwise retake and pass, unless the Commission waives this requirement.
Prelicense Education
Complete sixty classroom hours before the licensing examination and the thirty-hour Course for New Affiliates before original issuance. Rule 1260-05-.03(6) permits the specified real-estate degree/transcript or law-degree real-property/contracts/agency study to satisfy the sixty-hour course.
Secondary Education
High-school degree or state-approved high-school equivalency credential.
Reinstatement after sixty days within one year
No examination is required for this applicant pathway.
License Status
Expired more than sixty days but no more than one year.
Order
Sign a Reinstatement Order, establish all prerequisites, and pay renewal and prescribed penalties.
Penalty Schedule
Fifty dollars per thirty-day period or part through day 120; one hundred dollars per thirty-day period or part from day 121 through one year.
Reissued Expiry
Reinstated license is issued back to the original expiry date.

Official no-examination sources

Effective from 2026-09-22.

Reinstatement within sixty days
No examination is required for this applicant pathway.
Compliance
Provide all required compliance and fees; statutory reinstatement is without examination.
License Status
Expired for no more than sixty days.
Penalties
Pay renewal and prescribed late fees, subject to Commission waiver or reduction.

Official no-examination sources

Effective from 2026-09-22.

Renewal
No examination is required for this applicant pathway.
Education
Affiliate-broker licenses originally issued on or after July 1, 1980 require sixteen approved hours each two-year renewal period; include the six-hour TREC Core course when applicable. Time-share salesperson and acquisition-agent renewal is not assigned this affiliate-broker statutory CE requirement.
Insurance
Continue qualifying E&O coverage for active affiliate brokers and time-share salespersons; statutory exemption applies to acquisition agents.
License Status
Existing license holder; renew every two years through CORE and pay required renewal fees.

Official no-examination sources

Effective from 2026-09-22.

Retired renewal
No examination is required for this applicant pathway.
License Status
Retired licensee wishing to remain retired in a subsequent license period.
Renewal
Pay required renewal fee before expiration; no practice while retired.

Official no-examination sources

Effective from 2026-09-22.

Temporary retirement
No examination is required for this applicant pathway.
License Status
Existing licensee submits retirement request, license and change-of-status fee.
Practice
No activity within T.C.A. 62-13-102 while retired; keep address current and renew before expiration.
Retired Requirements
Board instructions state that retired licensees need no active E&O policy, continuing education, or firm affiliation.

Official no-examination sources

Effective from 2026-09-22.

Tennessee Affiliate Broker State Portion Examination

Examination outline
  • Duties and Powers of Real Estate Commission (Affiliate Broker – 4 Items)
    • Purpose of Commission
    • Persons and Disputes Not Within Commission Jurisdiction
    • Complaints, Notifications, Hearings
    • Disciplinary Actions
  • Licensing Requirements (Affiliate Broker – 4 Items)
    • Licensing Examinations
    • Educational Requirements
    • Other Qualifications
    • Change of Status, Name or Address
    • Firm Licenses; License Display
    • Renewal of License
    • Errors and Omissions Insurance
  • Advertising and Marketing (Affiliate Broker – 7 Items)
    • Requirements for Owner/Agent Advertising
    • "For Sale" Signs
    • Brokerage Company and Team Advertising
    • Internet Advertising
    • Information Required in Advertised Listings
    • Gifts and Prizes
    • Advertising on Social Media
  • Broker/Affiliate Relationships (Affiliate Broker – 5 Items)
    • How Compensation May Be Paid
    • Permitted Affiliations
    • Broker's Supervisory Responsibility
    • Change of Affiliation
    • Ownership of Affiliates' Listings
  • Handling of Documents and Record Keeping (Affiliate Broker – 4 Items)
    • Responsibility for Keeping Records
    • Length of Time to Keep Records
    • What Information/Documents Must Be Kept
    • Handling Offers and other Transaction Documents/Leave Copies
    • Commission Access to Records
  • Handling of Trust/Escrow Funds (Affiliate Broker – 4 Items)
    • Permissible Disbursements of Trust/Escrow Funds
    • General Requirements of Trust/Escrow Accounts
    • Commingling; Improper Use of Trust/Escrow Funds
    • Depository and Account Requirements
    • Interest; Non-liquid Valuables as Earnest Money
    • Time Requirements for Deposit of Funds
  • Other Improper Activities and Consumer Protection (Affiliate Broker – 3 Items)
    • Improper Listing Agreements
    • Discrimination
    • Other Misconduct
  • Agency and Disclosure Issues (Affiliate Broker – 6 Items)
    • General Agency Duties and Creation of Agency Relationship
    • Disclosure of Agency Relationships
    • Disclosure of Material Facts and Misrepresentation
    • Disclosure of Agent's Interest
    • Handling of Offers
    • Designated Agents
    • Facilitators
    • Dual Agency
  • Special Areas of Practice (Affiliate Broker – 3 Items)
    • Timeshare
    • Property Management
    • Commercial/Industrial Real Estate
Examination sources

Real Estate Salesperson Examination — National Portion (Real Estate Principles and Practices)

Provider
PSI Services LLC
Format
National portion of a state real estate salesperson examination delivered by PSI; a minimum score must be achieved on each portion, and a candidate who fails one portion (state or national) retakes only that portion
Exam questions
80 scored questions (80 points), plus one to ten unscored experimental items
Examination outline
  • I. Property Ownership (Sales 10%, Broker 10%) (10%)
    • A. Real and personal property; conveyances
    • B. Land characteristics and legal descriptions: 1. Metes and bounds method of legal property description; 2. Lot and block (recorded plat) method of legal property description; 3. Government survey (rectangular survey) method of legal property description; 4. Measuring structures (linear and square footage); 5. Land measurement
    • C. Encumbrances and effects on property ownership: 1. Types of liens and their effect on the title and value of real property; 2. Easements, rights of way and licenses, including their effect on the title, value and use of real property; 3. Encroachments and their effect on the title, value and use of real property; 4. Potential encumbrances on title, such as probate, leases, or adverse possession; 5. Property rights that may be conveyed separately from use of the land surface, such as mineral and other subsurface rights, air rights, or water rights
    • D. Types of ownership: 1. Ownership in severalty/sole ownership; 2. Implications of ownership as tenants in common; 3. Implications of ownership in joint tenancy; 4. Forms of common-interest ownership, such as Timeshares, Condominiums and Co-ops; 5. Property ownership held in a trust or by an estate; 6. Ownership by business entities; 7. Life Estate ownership
  • II. Land use Controls (Sales 5%, Broker 5%) (5%)
    • A. Government rights in land: 1. Government rights to impose property taxes and special assessments; 2. Government rights to acquire land through eminent domain, condemnation and escheat
    • B. Government controls on land use
    • C. Private controls: 1. Deed conditions or restrictions on property use; 2. Subdivision covenants, conditions and restrictions (CC&Rs) on property use; 3. Condominium and owners’ associations regulations or bylaws on property use
  • III. Valuation (Sales 8%, Broker 8%) (8%)
    • A. Appraisals: 1. Appraisals for valuation of real property; 2. Situations which require appraisal by a licensed or certified appraiser and brokerage-related actions that constitute unauthorized appraisal practice; 3. General steps in appraisal process
    • B. Estimating Value: 1. Economic principles and property characteristics that affect value of real property; 2. Sales or market comparison approach to property valuation and appropriate uses; 3. Cost approach to property valuation and appropriate uses; 4. Income analysis approach to property valuation and appropriate uses
    • C. Comparative Market Analysis (CMA): 1. Competitive/Comparative Market Analysis (CMA), BPO or equivalent; 2. Automated Valuation Method (AVM), appraisal valuation and Comparative Market Analysis (CMA)
  • IV. Financing (Sales 10%, Broker 9%) (10%)
    • A. Basic Concepts and Terminology: 1. Loan financing (for example, points, LTV, PMI, interest, PITI); 2. General underwriting process (e.g., debt ratios, credit scoring and history); 3. Standard mortgage/deed of trust clauses and conditions; 4. Essential elements of a promissory note
    • B. Types of Loans: 1. Conventional loans; 2. Amortized loans, partially amortized (balloon) loans, interest-only loans; 3. Adjustable-rate mortgage (ARM) loans; 4. Government Loans (a. FHA insured loans; b. VA guaranteed loans; c. USDA/Rural Development loan programs); 5. Owner financing (for example, installment or land contract/contract for deed); 6. Reverse-mortgage loans; 7. Home equity loans and lines of credit; 8. Construction loans; 9. Rehab loans; 10. Bridge loans
    • C. Financing and Lending: 1. Real Estate Settlement Procedures Act (RESPA), including kickbacks; 2. Truth-in-Lending Act (Regulation Z), including advertising; 3. Requirements and time frames of TRID (TILA-RESPA Integrated Disclosures); 4. Equal Credit Opportunity Act; 5. Lending Process (application through loan closing); 6. Risky loan features, such as prepayment penalties and balloon payments
  • V. Contracts (Sales 19%, Broker 19%) (19%)
    • A. General Contract Law: 1. General principles of contract law; 2. Elements necessary for a contract to be valid; 3. Effect of the Statute of Frauds; 4. Offer and a contract; 5. Enforceability of contracts; 6. Void, voidable and unenforceable contracts; 7. Bilateral and unilateral contracts; 8. Nature and use of option agreements; 9. Notice, delivery, acceptance and execution of contracts; 10. Appropriate use, risks, and advantages of electronic signatures and paperless transactions; 11. Rights and obligations of the parties to a contract; 12. Possible remedies for breach or non-performance of contract; 13. Termination, rescission and cancellation of contracts
    • B. Purchase and Lease Contracts: 1. Addenda and amendments to contracts; 2. Purchase agreements; 3. Contract contingencies and methods for satisfying them; 4. Leases and rental agreements; 5. Lease-purchase agreements; 6. Types of leases
    • C. Proper handling of multiple offers and counteroffers
  • VI. Agency (Sales 13%, Broker 13%) (13%)
    • A. Agency and non-agency relationships: 1. Agency relationships and how they are established; 2. Types of listing contracts; 3. Buyer brokerage/tenant representation contracts; 4. Other brokerage relationships, including transaction brokers and facilitators; 5. Powers of attorney and other assignments of authority; 6. Conditions for termination of agency or brokerage service agreements
    • B. Agent Duties: 1. Fiduciary duties of agents; 2. Agent's duties to customers/non-clients, including honesty and good faith
    • C. Agency Disclosures: 1. Disclosure of agency/representation; 2. Disclosure of possible conflict of interest or self-interest
  • VII. Property Disclosures (Sales 7%, Broker 7%) (7%)
    • A. Property Condition: 1. Seller's property condition disclosure requirements; 2. Property conditions that may warrant inspections or a survey; 3. Red flags that warrant investigation of public or private land use controls
    • B. Environmental and Government Disclosures: 1. Environmental issues requiring disclosure; 2. Federal, state, or local disclosure requirements regarding the property
    • C. Disclosure of material facts and material defects
  • VIII. Property Management (Sales 3%, Broker 5%) — items marked (BROKER ONLY) in this area are not part of the salesperson examination (3%)
    • A. Duties and Responsibilities: 1. Procurement and qualification of prospective tenants; 2. Fair housing and ADA compliance specific to property management; 3. How to complete a market analysis to identify factors in setting rents or lease rates (items 4. Property manager responsibility for maintenance, improvements, reporting and risk management; 5. Handling landlord and tenant funds; trust accounts, reports and disbursements; and 6. Provisions of property management contracts are marked BROKER ONLY)
    • B. Landlord and tenant rights and obligations
  • IX. Transfer of Title (Sales 6%, Broker 6%) (6%)
    • A. Types of deeds
    • B. Title Insurance and Searches: 1. Title insurance policies and title searches; 2. Potential title problems and resolutions; 3. Marketable and insurable title
    • C. Closing Process: 1. When transfer of ownership becomes effective; 2. Process and importance of recordation; 3. Settlement procedures (closing) and parties involved; 4. Home and new construction warranties
    • D. Special Processes: 1. Special issues in transferring foreclosed properties; 2. Special issues in short sale transactions; 3. Special issues in probate transactions
  • X. Practice of Real Estate (Sales 12%, Broker 12%) — subsection D. Supervisory Responsibilities is marked (BROKER ONLY) and is not part of the salesperson examination (12%)
    • A. Antidiscrimination: 1. Federal Fair Housing Act general principles and exemptions; 2. Protected classes under Federal Fair Housing Act; 3. Protections against discrimination based on gender identity and sexual orientation; 4. Prohibited conduct under Federal Fair Housing Act (Redlining, Blockbusting, Steering, Disparate Treatment); 5. Fair housing advertising rules; 6. Americans with Disabilities Act (ADA) obligations pertaining to accessibility and reasonable accommodations
    • B. Legislation and Regulations: 1. Licensees’ status as employees or independent contractors; 2. Antitrust laws and types of violations, fines and penalties; 3. Do-Not-Call List rule compliance; 4. Proper use of Social Media and Internet communication and advertising
    • C. Duties and Responsibilities: 1. Protection of confidential personal information (written, verbal or electronic); 2. Duties when handling funds of others in transactions; 3. Licensee responsibility for due diligence in real estate transactions
  • XI. Real Estate Calculations (Sales 7%, Broker 6%) (7%)
    • A. Calculations for Transactions: 1. Seller’s net proceeds; 2. Buyer funds needed at closing; 3. Real property tax and other prorations; 4. Real property transfer fees; 5. PITI (Principal, Interest, Taxes and Insurance) payments estimate given loan rate and term
    • B. General Concepts: 1. Equity; 2. Rate of return/Capitalization rate; 3. Loan-to-Value ratio; 4. Discount points and loan origination fees
Examination sources