Exam topics · Tennessee
The Commission's authority, advertising rules, trust account handling, and the violations that produce discipline. This is the section that fails people.
The state portion is memorization with no partial credit. Candidates who spend all their study time on national principles walk out having passed one portion and failed the other.
The Tennessee Real Estate Commission licenses and regulates licensees and education providers, sets education requirements, investigates complaints, and imposes discipline. It does not set commission rates, resolve private contract disputes, or practice law.
Advertising is one of the most common sources of discipline because it is public and easy to prove.
Funds belonging to others go into the firm's escrow or trust account, on the timeline the rules require, and never into an operating or personal account. Commingling and conversion are among the fastest routes to losing a license — and only the principal broker is ultimately accountable for the account.
Common grounds include misrepresentation, failing to disclose adverse facts, acting outside the scope of your license, mishandling funds, unlicensed practice, and failing to complete required education. Sanctions range from a reprimand to civil penalties, suspension, and revocation.
The Commission disciplines licensees. Contract remedies are a court matter.
That is commingling regardless of duration or intent.
The registered firm name must appear in the advertisement.
The principal broker. Supervision and accounting responsibility ultimately sits with them, regardless of who made the deposit.
No. Commissions are negotiable between the client and the firm, and any suggestion that rates are set is a serious problem.
The state portion is a separate, scored section you must pass on its own. Treat it as half the exam, not an afterthought.
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