Tennessee Real Estate Exam: Everything You Need to Know

To pass the Tennessee real estate exam, you need adequate preparation and access to the right information. Therefore, we have written this article to provide you with everything you need to know to prepare for and pass the Tennessee real estate exam. Here are some of the things you’ll be learning from this article: 

• How to schedule the Tennessee real estate licensing exam online 
• The documents you’ll need to register for the exam 
• The cost of the exam 
• Where you can take the exam 
• What to bring with you on the day of the exam 
• The content of the exam 
• The difficulty level of the exam 
• Practical tips on how to pass the exam 

How to Schedule the Tennessee Real Estate Licensing Exam

To qualify for the Tennessee real estate licensing exam, your pre-licensing education provider must submit an online application to PSI. This application should include proof that you have completed the pre-licensing coursework requirements. Once this application is submitted, PSI will review it, and if you are eligible, you will be sent a mail containing information on how to pay for and schedule the exam. 

Once you are declared eligible for the exam, you can visit the PSI website, create an account, and follow the prompts to schedule your exam.

The Tennessee real estate salesperson licensing exam costs $39 for each attempt. This fee can be paid using a valid credit card or mailing a cashier’s check or money order to PSI. Note that this exam fee will be forfeited if you do not take the exam within 6 months of paying PSI. 

Where Do You Take the Tennessee Real Estate License Exam?

The Tennessee real estate exam can be taken at approved in-person testing centers statewide, which are located at the following locations:

• Chattanooga
• Dyersburg
• Clarksville
• Johnson City
• Jackson
• Memphis
• Knoxville
• Nashville

Can You Take the Exam Online?

Yes, you can take the Tennessee real estate exam online with proctoring. To take the exam online, you’ll need to confirm that your computer meets the system requirements of PSI. 

What to Bring On the Day of Your Exam

On the day of your Tennessee real estate exam, you are expected to bring the following: 

• 2 means of non-expired, government-issued identification with matching names, a valid signature, and a photo of yourself on at least one. Examples of this include your driver’s license, U.S. social security card, green card, or a debit/credit card with a signature 
• A silent non-scientific calculator 

Note that on the day of your exam, you are expected to be at the testing center 30 minutes before your scheduled appointment. Within this period, you’ll complete your sign-in and identification and answer 5 qualifying questions required by the Tennessee Real Estate Commission (TREC). Note that you may not be allowed to take the examination if you arrive late.

What is on the Tennessee Real Estate Exam?

The Tennessee real estate licensing exam questions are divided into two sections: a national section and a state section. While the national section covers the general real estate principles and practices relevant across the United States, the state section focuses on Tennessee real estate laws and regulations.

Here are the topics you will come across in the various sections of the Tennessee real estate exam:

National Section 

The national section of the Tennessee real estate exam consists of the following topics: 

• Financing 
• Property Ownership
• Valuation and Market Analysis
• Land Use Controls and Regulations
• Property Condition and Disclosures
• Contracts
• General Principles of Agency
• Practice of Real Estate
• Transfer of Title
• Real Estate Calculations
• Subdivisions, including deed restrictions
• Commercial, Industrial, and Income Properties

State Section 

The state section of the Tennessee real estate exam consists of the following topics: 

• Duties and Powers of the Real Estate Commission
• Advertising and Marketing
• Licensing Requirements
• Handling of Documents and Record Keeping
• Broker/Affiliate Relationships
• Handling of Trust/Escrow Funds
• Agency and Disclosure Issues
• Other Improper Activities and Consumer Protection
• Special Areas of Practice (Timeshare, Property Management, Commercial/Industrial Real Estate)

Will There Be Math on the Exam?

You can expect to see some math questions on your Tennessee real estate exam. The national section of the exam contains anywhere between 8 and 13 questions on real estate calculations. These questions will typically relate to credits and debits, property taxes, Loan-to-Value (LTV) ratios, property valuation, and measurements, market sales price, Return On Investments (ROI), etc.

Remember that these math problems could be challenging and time-consuming to answer. So, unless the answers are obvious, it is best to save these questions for later while you go on to answer other questions. This way, you have enough time to answer more questions.

Is the Tennessee Real Estate Exam Hard?

While the Tennessee real estate exam is generally considered “not easy,” its difficulty level may differ depending on a candidate’s preparation and knowledge of the fundamental concepts of real estate. This simply implies that the more thoroughly you prepare for this exam, the easier you should find it.

How Many Questions Are on the Tennessee Real Estate Exam?

The Tennessee real estate licensing exam comprises a total of 120 questions comprising 80 national-specific questions and 40 state questions. These questions are all multiple-choice, with each coming with 4 options to choose from. Candidates will be given 160 minutes to complete the national section and 80 minutes to complete the state section, making a total of 4 hours for the entire exam. 

The passing score for this exam is 70%, meaning that candidates must answer 56 questions correctly in the national section and 28 correctly in the state section to pass. Once the exam is completed, your score will be displayed on the computer screen so you can tell whether you passed or failed. 

What is the Passing Rate for the Real Estate Exam in Tennessee?

About 89% of Tennessee candidates who take the real estate exam pass the national section, and about 60% pass the state section on the first try. This implies that if 1,000 candidates sit for the exam, 890 will likely pass the national section, and 600 will likely pass the state section. 

It is important to note that this passing rate may be affected by changes in the content of the exams, difficulty levels, and candidates' study habits. 

How Many Times Can You Take the Real Estate Exam?

If you fail the Tennessee real estate exam, you can schedule a retake a day after the failed examination. This implies that candidates can resit for the exam in as little as two days. However, if you fail after the second attempt, you must wait 30 days before retaking it. 

If you pass only one section of the exam, you can retake the failed section twice within 6 months. If you do not pass the failed section after the second retake or within 6 months, your score on the section you passed becomes invalid. 

How to Pass the Tennessee Real Estate Exam

To pass the Tennessee real estate exam, you will need to pull out all of the stops on studying. When you implement every tool at your disposal to create a detailed, intentional study plan, you will increase your chances of passing on your first attempt.

Here are a few effective study tools that you can adopt in your preparation for the Tennessee real estate licensing exam:

Create a Study Schedule

The ideal study schedule should create a balance between your study time and the time for your other daily activities. Therefore, when creating one, you should consider some basic factors, such as your current commitments, learning style, and the number of topics to cover.  

When you create your schedule, a good rule to live by is to not overdo it. The schedule should have a few hours of studying every night or every other night. Studying a little bit on a consistent basis is good for you to maintain a healthy pace without burning you out.

Use Acronyms and Mnemonic Devices

Acronyms and mnemonic devices are memory aids that simplify complicated information to make it easy for the human brain to process. These two are great tools for studying for the Tennessee real estate licensing exam.

Acronyms are words derived by putting the first letters of each word in a phrase and putting them together. Regarding your real estate exam, you can use acronyms to help you remember real estate terms, terminologies, and phrases without difficulty. A good example of an acronym in real estate is ROI which stands for Return On Investment.

A mnemonic device is a way of associating certain information with relatable things, thus making it easier for them to be remembered. An example is “Sing To Children Daily,” which stands for the various residential properties. 

• SING for Single-family homes
• TO for Townhomes
• CHILDREN for Condos
• DAILY for Duplexes

Join a Study Group

Joining a study group is a smart move to make as you get ready for your Tennessee real estate license exam, as it offers several benefits, including: 

• Active discussions and sharing of resources and ideas between you and other group members enable you to learn actively rather than passively.
• Helps you to gain different perspectives and a well-rounded understanding of various topics since your study partners are likely to have a unique point of view regarding each topic.
• Increases your sense of accountability and motivates you during times of low energy.

Get Guided Help

As we mentioned before, there is a vast amount of information to review. With all of this material, it is easy to get lost in your studying or become overwhelmed because you can’t figure out where to begin.

That’s why we created a real estate exam prep package. This package organizes everything you need to know in Tennessee to pass the exam. It equips you with practice exams, vocabulary flashcards, an eBook study guide, and so much more.

This guided exam study help takes away the hard parts of studying and make it easy and fun. With this prep package, you can ensure you’re doing everything you can to pass the exam.

Final Thoughts on the Real Estate Exam in Tennessee

The most important thing to remember when preparing for the Tennessee real estate exam is to take everything one step at a time! It’s easy to get excited and overdo your studies or miss a step. This could cost you down the line, so be sure to be patient and do your study diligence.

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