Free Tennessee Real Estate Exam Cheat Sheet (Printable)

Tennessee license law — the numbers

Affiliate Broker pre-license: 60 hours + 30-hour New Affiliate Broker course
Broker license: 3 years active licensure + 120 hours total education
CE renewal cycle: 16 hours every 2 years, including the TREC mandatory core
Errors & omissions: Continuous coverage required to stay active
Earnest money deposit: Into escrow by the end of the next banking day after acceptance
Record retention: 3 years from closing or the date the listing expired
Advertising: Must include the firm name as licensed with TREC

Agency duties you must recite

O: Obedience to lawful instructions
L: Loyalty — client's interest above your own
D: Disclosure of material facts
C: Confidentiality, which survives the agreement
A: Accounting for funds and documents
R: Reasonable care and diligence
Facilitator: No advocacy for either side; still owes honesty and accounting

Math formulas that actually show up

Commission: Sale price × rate = gross commission; then split by agreement
Loan-to-value: Loan amount ÷ appraised value or sale price, whichever is lower
Capitalization rate: Net operating income ÷ value
Value from NOI: NOI ÷ cap rate = value
Property tax: Assessed value × assessment ratio × tax rate
Proration: Annual amount ÷ 365 × days owed by that party
Area: Acre = 43,560 sq ft; section = 640 acres; mile = 5,280 ft
Transfer tax (TN): $0.37 per $100 of consideration
Mortgage tax (TN): $0.115 per $100 of indebtedness over $2,000

Contract triggers

Valid contract: Offer, acceptance, consideration, capacity, legal purpose
Counteroffer: Kills the original offer — it cannot be revived by acceptance
Acceptance: Not binding until communicated to the offeror
Statute of frauds: Real estate contracts must be in writing to be enforceable
Time is of the essence: Deadlines become material; missing one is a breach
Specific performance: Buyer's remedy forcing the seller to convey
Liquidated damages: Pre-agreed sum, usually the earnest money

Terms students miss most

Emblements: Annual crops — personal property, they go with the tenant
Escheat: Property to the state when an owner dies with no heirs or will
Accretion vs. avulsion: Gradual soil buildup vs. sudden loss of land
Novation vs. assignment: New party replaces liability vs. rights transfer only
Encroachment vs. easement: Unauthorized intrusion vs. granted right of use
Police power: Zoning and codes — no compensation owed
Eminent domain: Taking for public use — just compensation owed
Freehold vs. leasehold: Ownership interest vs. right of possession
Fee simple defeasible: Ownership that can be lost if a condition is violated
Blockbusting / steering: Fair housing violations — automatic wrong answer

Study aid only. Tennessee requirements are set by the Tennessee Real Estate Commission and can change — always confirm current rules with TREC before relying on a number.