Broker and real estate agent: What Each Means in Tennessee Real Estate

In Tennessee real estate, the terms broker and REALTOR® refer to different things: a broker is a license type issued by the Tennessee Real Estate Commission, while a REALTOR® is a member of the National Association of REALTORS® who may be either an agent or a broker. To become a real estate broker, an affiliate broker must hold an active license for 24 to 36 months, complete 120 hours of TREC-approved education including a 30-hour Office/Broker Management course, pass the PSI broker exam with a minimum score of 75%, and submit a $91 application to TREC within one year of passing. Tennessee calls its entry-level license an affiliate broker license (the equivalent of what most states call a salesperson or agent), and the broker license is the upgrade that allows independent practice.

Experience requirements for the Tennessee broker license

Broker candidates must hold an active affiliate broker license for a minimum period that depends on when they were originally licensed and whether they hold a qualifying degree. Before pursuing the broker upgrade, candidates must first obtain an affiliate broker license, which requires pre-licensing education and a passing score on the affiliate broker exam. The TREC broker licensing page^[1] establishes three experience pathways for the broker upgrade:

The experience must be active. Time in retired or inactive status does not count toward the minimum. The affiliate broker license must remain in good standing throughout the qualifying period. Attorneys are not exempt from broker licensing requirements and must meet the same standards as all other candidates, according to the TREC pre-licensing FAQ^[2].

Education requirements for the Tennessee broker upgrade

Broker candidates need TREC-approved real estate education beyond the affiliate broker coursework already completed. The coursework must include an Office/Broker Management component taken at a TREC-approved school. TREC lists approved broker courses on its education page^[3]. Pre-license courses cannot be used for continuing education credit, as TREC states on its approved courses page^[3].

The Tennessee broker licensing exam

PSI administers the broker licensing exam on behalf of TREC. The exam is divided into two sections (national and state), and candidates must pass both with a minimum score of 75%, according to TREC Worksheet A^[4].

The TREC PSI exam page^[5] lists the following exam fees:

The national section allows 150 minutes, per the TREC PSI exam page^[5]. Candidates who pass one section but fail the other need only retake the failed section. As of July 1, 2025, the passing score for one section is valid for two retakes of the failed section or one year, whichever comes first, according to the PSI Candidate Information Bulletin. There is no separate retake fee: candidates pay the same section fee each time they register. After a second failed attempt, candidates must wait 30 days before scheduling another attempt, per the TREC pre-licensing FAQ^[2].

How to apply for your Tennessee broker license

The broker license application process has two phases: TREC reviews and approves the examination application first, then the candidate takes the exam and files the license application. TREC's review takes approximately four weeks before the candidate can schedule the exam with PSI, per the TREC broker licensing page^[1].

After passing the exam, candidates must file the license application online through core.tn.gov within one year of the exam date, per the TREC broker licensing page^[1]. If the application is not filed within one year, the candidate must retake and pass the exam. The application fee is $91, per the TREC fee schedule^[6].

Required documents for the broker license application include:

• PSI examination application signed by the principal broker
• Proof of errors and omissions (E&O) insurance
• Proof of completion of the 30-hour Office/Broker Management course
• Eligibility for Entitlements Verification form
• Electronic fingerprinting receipt (if not currently an active affiliate broker in Tennessee)

Fingerprinting is processed through IdentoGO using service code 28TZ99. Candidates who are currently active affiliate brokers in Tennessee typically already have fingerprints on file and do not need to resubmit.

Post-licensing education for Tennessee brokers

TREC requires post-licensing education for brokers who received their license after January 1, 2001, before they enter the standard renewal cycle, per the TREC broker licensing page^[1]. This requirement is separate from the education completed before the exam.

Broker, agent, and real estate agent: what each means in Tennessee

In Tennessee, the entry-level real estate license is the affiliate broker license. The distinctions between an affiliate broker, a broker, and a REALTOR® come down to license type, supervisory authority, and professional association membership.

Real estate broker vs. real estate agent

Affiliate brokers must be supervised by a licensed broker and cannot operate on their own. A broker has met the education and experience requirements outlined above, holds a broker license, and may run an independent real estate business, employ affiliate brokers, and manage transactions without oversight. A broker may also serve as the principal broker for a real estate firm, assuming supervisory responsibility for all affiliated agents.

The affiliate broker and broker licenses cover all property types. There is no separate commercial real estate license in Tennessee.

What is a real estate agent?

A real estate agent is any licensed real estate professional who joins the National Association of REALTORS®^[7] through a local association and follows the NAR Code of Ethics. The designation is open to both affiliate brokers and brokers. All REALTORS® hold a state real estate license, but not all licensees join NAR.

The median annual wage for real estate brokers in the United States was $72,280 in May 2024, compared to $56,320 for real estate sales agents, according to the Bureau of Labor Statistics^[8].

If you meet the experience requirement, your next step is to enroll in a TREC-approved broker education course, including the Office/Broker Management component, and ask your principal broker to sign your PSI examination application.