Starting a Real Estate Career in Tennessee

The vibrant cityscape of Nashville, the majestic beauty of the Smoky Mountains, and the burgeoning charm of Chattanooga – Tennessee’s real estate landscape offers a diverse and dynamic canvas for a fulfilling and successful career. But getting to that point takes considerable steps and hours of learning.

This comprehensive guide will serve as your roadmap to navigate the path to licensure. We’ll demystify the process, providing clear and concise information on everything from pre-licensing education to post-licensing steps.

So, ditch the doubts and embrace the excitement. You can transform your real estate aspirations into a thriving career with dedication and the proper guidance. Let’s embark on this journey together, one step at a time.

Tennessee Real Estate Licensing Requirements

The Tennessee Real Estate Commission is responsible for licensing, registering, and regulating real estate brokers, affiliate brokers, real estate firms, agents specializing in rental locations, salespersons for time-shares, developers, and vacation clubs and lodging services. 

Additionally, TREC formulates the rules that govern professional behavior and standards within the industry.

The extensive application process ensures prospective Tennesee agents are knowledgeable, trustworthy, and prepared to help residents with their most important investments: their homes.

Before starting, Tennessee has some essential prerequisites applicants must meet, such as:

• Must be 18 years of age
• Possess a Social Security number
• Have a high school diploma or GED
• Pass a background check

With the basic requirements met, it’s time to tackle the complicated steps.

Pre-Licensing Education

Tennessee mandates a 90-hour pre-licensing education course offered through approved instructors for a real estate affiliate broker license. Applicants can complete the online courses covering 60 hours of principals and fundamentals and the 30-hour Course For New Affiliates.

Aceable Agent has a 91% national pass rate and offers a 90-hour TREC-approved licensing course starting at $195. The basic plan includes instructor support and exam prep with a pay-over-time option.

Fingerprinting & Background Check

Completing pre-licensing education—and passing the eventual big exam—provides confidence in your learning abilities while teaching about ethics and principles. 

But, TREC also requires fingerprints for a background check to ensure your past is as clear as your future. Here’s how it works.

Two Paths to Fingerprint:

• IdentoGO® Express: This is the preferred route for most. Schedule an appointment online at the nearest location, pack your government-issued photo ID (like your driver’s license or passport), and prepare for the $43 fee. IdentoGO will then electronically send your fingerprints to the FBI and TBI, saving you time and paperwork.
• Digital Fingerprinting (Out-of-State Option): If you’re outside Tennessee or physically unable to visit IdentoGO, options are still available. Visit https://identogo.com/locations/tennessee, select “Digital Fingerprinting,” and request pre-printed fingerprint cards. Fill them out carefully, following the instructions, and mail them back using the provided envelope. Your fingerprints will still reach the FBI and TBI for processing, just through a slightly different route.

Addressing Concerns (If Needed)

In rare cases, some issues arise during the background check. If this happens, TREC will reach out, and you’ll have the opportunity to provide additional information or documentation to explain prior convictions. Remember, transparency and accuracy are vital throughout the process. 

Find a Sponsor Brokerage

So long as you’re confident in your background check, you can continue moving forward. The next step is securing a new business home and finding a brokerage.

Agents must have a sponsored broker before an application is submitted. 

Before rushing out to the nearest realty firm, it’s vital to consider your future career goals and path.

Choosing Your Specialty

Real Estate is a field with diverse possibilities. Reflect on whether your passion lies in helping families find their dream homes, assisting businesses in securing the perfect commercial space, or managing properties for investors. 

Each specialty has its own set of demands and skills:

• Residential Real Estate: Focus on individual or family dwellings, selling single-family homes, condominiums, and townhouses.
• Commercial Real Estate: Specialize in business properties, including leasing and selling office spaces, retail locations, and more.
• Property Management: Manage the leasing of residential, commercial, or industrial properties for investors.

Real estate agents have the added decision of becoming a REALTOR®. Agents are not REALTORS® until joining the National Association of REALTORS®, a membership most prevalent in the residential industry that provides access to the Multiple Listing Service (MLS)® and benefits like discounted healthcare and legal support.

Finding the Right Brokerage Fit

Choosing a brokerage can significantly influence your career direction and growth. New agents should interview several realty firms and speak with local brokers for market intel.

Take advantage of platforms like Agent Nook to delve into the cultures and strengths of different brokerages. Finding a brokerage that complements your chosen specialty and supports your career goals and development will provide a better path to success.

Bring your salesperson application along. It requires a signature from the principal brokerage.

Filing the Application

With 90 hours of education under your belt, a clean background, and your ideal brokerage chosen, it’s time to complete the application to receive approval for the Real Estate Exam.

In Tennessee, applicants can use the online CORE system to complete the streamlined process.

Be sure to have the following documents prepared:

• Education Credentials: Proudly attach copies of your certificates for the 90-hour pre-licensing course.
• Fingerprint Clearance: Include the fingerprint receipt you received after your background check came back clear.
• Fingerprint Policy & Acknowledgement Form: Sign to acknowledge you understand how TREC will use your fingerprints. 
• Errors & Omissions Insurance: Secure errors and omissions (E&O) insurance, acting as a protective shield for you and your future clients.
• Sponsoring Broker Agreement: A form signed by the designated broker at your chosen realty firm.

The initial application fee is $91, due while completing your application.

The Tennessee Real Estate Exam

After TREC processes and approves an application, a physical postcard from PSI exams will arrive through the mail confirming exam eligibility.

Your pre-licensing education is hopefully still fresh in your mind. The 120-question multiple-choice exam includes 80 questions covering national real estate principles and practices and 40 questions on Tennessee-specific laws and regulations. A 70% score is passing.

Tennessee Real Estate Exam details:

• Number of Questions: 120 multiple-choice questions. 80 National and 40 State.
• Passing Scores: A minimum score of 70%
• Question Types: multiple-choice, testing your understanding of real estate principles and laws
• Duration: 4 hours total. 160 minutes on the National portion and 80 minutes on the State.
• Cost: $39
• Real Estate Exam Booklet 

The exam is challenging but fair. Passing the exam will provide the confidence and pride to launch your new real estate career.

The License Issuance Process

Congratulations! You passed with flying colors and are officially across the finish line. Here’s what to expect next:

1. Upon passing the exam: Once you submit your official passing score report to TREC, they will begin processing your license.
2. Review and verification: TREC will verify your background check clearance and ensure all fees and documentation are in order, taking up to four weeks.
3. License delivery: If everything is satisfactory, TREC will mail you your official Tennessee affiliate broker license.

While waiting, jump into your post-licensing education.

Post-Licensing Education

After completing 90 hours of education, long nights of studying, and crushing the big exam, more education sounds exhausting. And it is, but education is an ongoing part of selling real estate, and continuing education is a must throughout your career.

Tennessee requires new licensees to complete 30 hours of post-licensing education. TREC highly recommends completing the education within the first six months. However, licensees have until their first license renewal to complete.

After the initial renewal period, affiliate brokers must complete 16 hours of continuing education (CE) past their initial 3-year post-broker 120-hour education requirement.

Final Thoughts

The requirements and hours of education seem daunting when starting your real estate career. But an exciting career awaits on the other side.

Selling real estate is a lifestyle career unlike any other, offering unique freedoms and unlimited earning potential. Plus, you get to tour fun houses and meet amazing new people.

Real estate agents are key figures in many people’s most stressful and exciting journeys. A job well done earns new close friends and even spots at the holiday dinner table.

The first step is the hardest, so lock in your pre-licensing education and tell the world your plans. Real estate is about self-promotion and marketing, so share this guide and let your friends and family know there’s a new go-to real estate broker in town.

Welcome to the industry. You’re going to do great.