Getting a Real Estate License in Tennessee
Quick note: Through this post I’m looking to provide a flowery resource of getting a real estate license in Tennessee. Make sure you check out the bottom portion explaining rough costs associated with licensing. Whether or not you should get your license is another post for another day. With that, let’s begin with some definitions.
How can I sell real estate in Memphis and/or Tennessee?
Most commonly, this would refer to you getting your “Affiliate Broker” license in the state of Tennessee. There’s some other licensing like timeshares and acquisition agents, but primarily this means licensing as an Affiliate Broker. You can head to the Tennessee Real Estate Commission (TREC) site here for more information about each license.
So I get licensed to be a REALTOR®?
The basic term after getting licensed is “Real Estate Agent” or “Affiliate Broker”. The industry is very strict on not using the term “REALTOR®” until you associate with the National Association of Realtors. That looks like paying dues and attending classes as it is a separate entity as a trade association.
Your local REALTOR® board will handle your application and provide resources at the local level. When you apply for the Memphis Area Association of REALTORS (MAAR), they will also handle your application for Tennessee Association of REALTORS (TAR) and National Association of REALTORS (NAR) all within one application.
One of the major benefits of associating with MAAR is the access to Memphis’ Multiple Listing Service, Paragon MLS.
Is there a separate license for Residential and Commercial transactions?
There is not a separate license in Tennessee for residential and commercial real estate. Having your Affiliate Broker or Broker license permits you to buy/sell both residential and commercial property.
Alright, so what’s the process look like?
1) Familiarize yourself with the Tennessee Real Estate Commission (TREC) and licensing areas and requirements.
2) Now, we can have some conversations with real estate agents and Principal Brokers. I’d recommend starting talking to someone, or several folks, in real estate. Bonus points if it’s a Principal Broker, because they will normally love to provide encouragement throughout the process. Here’s a few questions to get the conversation rolling:
What’s the best real estate license classes to take?
Who are other folks you’d recommend me talking to about affiliating?
Is there anything relevant in the market right now I should be aware of?
3) Next up, find and register for a licensing class.
As an Affiliate Broker, you’ll need 60 hours of coursework for the National portion of exams, and 30 hours for the Tennessee portion of exams.
I used The CE Shop for all of my courses and did everything online at my own pace. Pick what works best for you and your learning style and schedule.
Online and in-person classes are available.
Don’t stress too much about this now, but take a look at the PSI Candidate Bulletin, especially the percentage break-down of material to be on the test
4) Do the coursework.
From here, you’ll start moving through coursework either in a classroom setting or online.
Pro-tip: I recommend taking detailed notes in real-time instead of coming back to review important topics. It was helpful for me to write everything down and pause the material as I needed to understand deeper. However, you do you.
5) Start talking with Brokerages and Principal Brokers.
For most folks who want to have their license active upon passing exams, it makes sense to exploring where you want to “hang your license”.
Do you want a firm with experience in residential, commercial, or both? Do you plan to sell real estate full-time or on the side? These are a few of the many questions you should consider in this phase.
6) Take a peak at some of the practice tests.
Now that you’re getting the hang of classes, take a break to look at practice tests and sample questions. The PSI practice test is what I used to study and get an idea of sample questions.
7) Finish your National portion of classes and pass exit exam.
Important Note: There is a difference in your course exit exam and the licensing test. Passing your course is your ticket to sit for the licensing test.
Once you pass your National class, you technically are able to sit for the National portion of the licensing exam. I chose to do them together, but you got options.
8) Finish your State portion of classes and pass exit exam.
Again, passing the class is your ticket to sit for the licensing exam.
9) If you’re ready, schedule your licensing exam date and time.
PSI is the exam provider and you can read more about scheduling your test here.
Your education provider will automatically send the completion of your courses to PSI/State of Tennessee.
You’ve got the option to go into a testing center, or do it remote with a proctor.
Speaking from experience, be aware you don’t get breaks during the test. It might be helpful to practice studying without using headphones or anything as they are very strict if you choose remote proctoring.
10) Get on the study grind.
Start studying. And talk to other people about how they studied.
CE Shop Practice Exams and Test Prep Edge
11) You passed! Job well done.
Take some time to celebrate–that wasn’t the easiest thing you’ve ever done. This is also a good time to tease a few things on social media, or reach out to your contacts who helped you through the process.
12) If you haven’t already, decide what firm you want to affiliate with and reach out to your Broker.
13) Your next step is actually applying for your license.
Apply for your license at core.tn.gov. Before you start, make sure you’ve got:
National Test Results and Signature from Broker
State Test Results and signature from Broker
HS Diploma or higher proof
Fingerprinting!
This is typically the longest waiting period for your license application
Here’s the link to make an appointment: https://www.identogo.com/
After your application is approved (roughly 2-4 weeks from when you pass the test), you are officially licensed to practice real estate in Tennessee.
14) After your application is approved and you affiliate with a Principal Broker (roughly 2-4 weeks from passing the test), you are officially license to buy/sell real estate in Tennessee.
However a lot of folks, especially in residential real estate, will decide to become a REALTOR®.
Steps for becoming a REALTOR®
As a new affiliate broker, you’ll be applying for the “REALTOR-ASSOCIATE” membership with the Memphis Area Association of REALTORS®. You can see all of the memberships here.
The application is simple, just make sure you are coordinating with your Principal Broker to get the proper signatures and reviewing the documents if necessary.
Expect to provide:
your application for MAAR signed by Principal Broker or “Designated REALTOR”;
A copy of your Tennessee RE License;
Quite a bit of money (more on that in “What should I expect to pay?”)
After your application is accepted, you’ll have to complete a few orientation classes within 90 days.
15) Finally, what’s your strategy?
What segment of the market are you entering? What continuing education do you need? What's your marketing strategy look like?
Now let’s talk money. How much should you expect to pay for getting your license?
Below I’m outlining all of my expenses. Keep in mind these are not completely accurate and can change on a variety of factors.
EXPENSES:
The CE Shop - National & Tennessee Online Licensing Course: $425.35
PSI Practice Exam: $20.80
PSI Exam Fee: $39.00
TREC License Application Fee: $91.00
Errors & Omissions Insurance (Annual): $225.00
Memphis Area Association of REALTORS® Application Fee: $145.00
Memphis Area Association of REALTORS® MLS Orientation Fee: $150.00
Memphis Area Association of REALTORS® Sentrilock Training: $25.00
Memphis Area Association of REALTORS® MLS Fee (varies based on time of year): $261.00
MAAR Dues (varies based on time of year): $406.00
TOTAL EXPENSES: $1,788.15
Many of these expenses are re-occuring. This list may not be exhaustive of all of your expenses.
Want to talk further about whether getting a license is right for you? Reach out at realestate@travistinnin.co.
Travis is a Tennessee licensed REALTOR® (TN Lic. #371241) with Bluff City Realty.
