FreeRealEstateExamPrep
Updated October 2026

Tennessee Real Estate Practice Exam

A free practice test for the Tennessee salesperson exam, for the weeks before your test date, with an explanation on every answer. Score yourself against Tennessee's real 70% pass line before you book.

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Property disclosures

A Tennessee licensee actually knows an adverse fact affecting a transaction party who is not the licensee's client. Which general statutory duty applies?

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This practice exam is a study aid, not the real exam. Our questions are written by us to match the published content outline. They are not actual exam questions, no score here predicts a pass, and this site is not affiliated with, endorsed by, or sponsored by PSI, Pearson VUE, ARELLO, any state real estate commission, or any government agency. Your state commission and your candidate handbook are the only authoritative sources.

Tennessee real estate exam at a glance

Tennessee real estate salesperson exam at a glance
National questions80 scoredsource
State-law questions40 scoredsource
Passing score70%source
Time limit4 hourssource
Exam fee$63.00 per attemptsource
Test providerPSIsource
Pre-licence education90 hourssource

Figures verified against official sources on . Exam fees and rules change. Check the linked source before you book.

10 sample questions, with answers explained

Every question above with its correct answer and the reasoning behind it. Read the explanations for the ones you answered correctly too. A lucky guess and knowing the rule look identical on a score report. These are sample questions from our larger bank.

  1. 1. A Tennessee licensee actually knows an adverse fact affecting a transaction party who is not the licensee's client. Which general statutory duty applies?

    • ADisclosure of known adverse facts is owed to each partycorrect
    • BKnown adverse facts may always be concealed from customers
    • CDisclosure depends solely on whether the licensee authored an inspection report
    • DDisclosure is owed only to the paying client

    Why: The statute's general duties include reasonable skill and care and disclosure of adverse facts actually known to each party, subject to the statutory framework. Customer status does not automatically excuse concealment.

    Property disclosures

  2. 2. A Tennessee facilitator argues that confidentiality belongs only to represented clients. What does the general all-party duty provide?

    • AMaintain confidentiality of information obtained from each party as the statute requirescorrect
    • BConfidentiality begins only after recording a deed
    • CEvery nonclient statement is automatically public information
    • DOnly sellers can ever supply confidential information

    Why: The statute lists confidentiality among duties owed to each party, not solely agency clients. This does not remove other required adverse-fact disclosure duties.

    Agency

  3. 3. A Tennessee firm keeps all license credentials private and unavailable to visitors. Which principal-office requirement applies?

    • ANo public credential access is required
    • BOnly the licensee's clients may ever inspect credentials after closing
    • COnly the firm's franchise certificate must be available
    • DBroker and affiliate licenses must be displayed or otherwise available for public inspection electronically or in hard copycorrect

    Why: The statute permits electronic or hard-copy availability but requires public inspection access at the principal office. Flexible format does not mean the credentials may be entirely unavailable.

    Practice of real estate

  4. 4. A Tennessee broker keeps escrow records showing only the current bank balance. What additional statutory information must the records show?

    • AOnly the broker's annual sales ranking
    • BOnly the property's listing photographs
    • CNo other information if the bank balance is positive
    • DDepositor, deposit date, withdrawal date and payee, retained at least 3 yearscorrect

    Why: The statute requires a minimum 3-year escrow record with the depositor and deposit and withdrawal details. A positive aggregate bank balance does not identify each person's funds or their disposition.

    Practice of real estate

  5. 5. An affiliate broker leaves Firm A for Firm B and wants to take the six listings she secured while at Firm A. Under Rule 1260-02-.02(4), when may she take or use them?

    • AOnly if Firm A's principal broker authorizes it in writingcorrect
    • BWhenever the sellers sign a release in her favor
    • COnly after giving Firm A 30 days' written notice
    • DWhenever she personally generated the leads

    Why: Rule 1260-02-.02(4) says a licensee who terminates affiliation shall neither take nor use any property listings or buyer representation agreements secured through the firm unless specifically authorized by the principal broker in writing. Listings belong to the firm, so seller releases or who found the lead do not change the rule.

    Practice of real estate

  6. 6. A Tennessee licensee deposits others' transaction money into the same bank account as personal or business funds. Which defined practice is involved?

    • AA valid novation
    • BA land-use variance
    • CComminglingcorrect
    • DAn automatic agency appointment

    Why: The rule defines commingling by keeping others' funds in the same bank account as personal or business money. Separate client ownership must not be obscured by ordinary mixed-account handling.

    Practice of real estate

  7. 7. A Tennessee client neither knew nor had reason to know of the licensee's misrepresentation. What does the Tennessee liability provision state about that client or party?

    • AThe client's liability is determined only by the amount of earnest money
    • BThe client or party is not liable under that provision on those factscorrect
    • CThe provision eliminates the managing broker's liability in every case
    • DEvery client automatically guarantees all licensee statements

    Why: The statute limits client or other-party liability absent knowledge or reason to know, while not limiting managing-broker liability. Those are separate liability rules.

    Agency

  8. 8. A new Tennessee affiliate broker has received a valid license but has not yet bought errors and omissions (E&O) coverage. May her principal broker let her begin showing property?

    • AYes, because E&O coverage is due only at the first renewal
    • BNo, unless she first places her license in retired status
    • CNo, a licensee must hold a valid license and be covered by E&Ocorrect
    • DYes, if the firm carries a policy naming the principal broker

    Why: Rule 1260-01-.04(1) bars a principal broker from permitting a licensee to engage in the real estate business unless the licensee has been issued a valid license and is covered by an errors and omissions policy. TREC also asks for proof of E&O with the initial application. Placing a license in inactive or retired status only suspends the duty to carry E&O until the license is activated (Rule 1260-01-.15(1)).

    Practice of real estate

  9. 9. A Tennessee affiliate broker wants to buy, for herself, a house that is listed with her own firm. Under Rule 1260-02-.11(1), what must she do before trying to acquire it?

    • ATransfer her license to a different firm first
    • BMake a full disclosure of her true position to the ownercorrect
    • CGet written approval from the Real Estate Commission
    • DWait until the listing agreement has expired

    Why: Rule 1260-02-.11(1) bars a broker or affiliate broker from buying or trying to acquire any interest in property listed with her or her company without first making a full disclosure of her true position to the owner. Rule 1260-02-.11(2) also requires all licensees to identify themselves as licensees when buying or selling property for themselves.

    Property disclosures

  10. 10. The state portion of the Tennessee affiliate broker exam has 40 scored items. How many must a candidate answer correctly to pass that portion?

    • A24
    • B28correct
    • C30
    • D32

    Why: PSI's Tennessee bulletin sets the affiliate broker state portion at 40 items in 80 minutes with a minimum passing score of 28 correct, which is 70%. The national portion is 80 items with 56 needed. A candidate who passes one portion and fails the other retakes only the failed portion.

    Practice of real estate