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:
| Pathway | Minimum active experience |
|---|---|
| Licensed on or before May 12, 1988 | 24 months |
| Licensed after May 12, 1988 | 36 months |
| Holds a baccalaureate degree with a major in real estate | 24 months |
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].
Broker candidates must have held an active affiliate broker license for 36 months if licensed after May 12, 1988, or 24 months if licensed on or before that date or if they hold a baccalaureate degree with a major in real estate. Candidates must complete 120 classroom hours of approved real estate education, 30 of which must be an "Office/Broker Management" course at a TREC-approved school, and the exam approval process takes approximately 4 weeks. After passing the exam, the applicant must file a license application within 1 year, pay the $91 application fee through core.tn.gov, and submit proof of E&O insurance, proof of the 30-hour Office/Broker Management course, an Eligibility for Entitlements Verification form, and an electronic fingerprinting receipt if not already an active affiliate in Tennessee. Brokers licensed after January 1, 2001 must also complete 120 additional hours of Commission-approved education within three years of their broker license issuance.
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:
| Exam registration | Fee |
|---|---|
| Full broker exam (national + state) | $63 |
| National section only | $37 |
| State section only | $26 |
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].
Broker candidates must complete 120 classroom hours of TREC-approved real estate education, including a 30-hour Office/Broker Management course, before sitting for the exam. PSI administers the exam in national and state sections, and the TREC approval process takes approximately 4 weeks before a candidate may schedule. The PSI Candidate Information Bulletin provides the exam content outline, and candidates may test at a Tennessee test center or online through secure remote proctoring.
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.
Brokers must complete 16 hours of continuing education every 2 years, including a 6-hour TREC Core Course. Brokers licensed after January 1, 2001 must also complete 120 additional hours of Commission-approved education within the initial years following their broker license issuance. If not completed on time, an extension is allowed while accruing a $50 monthly fee. After completing the 120-hour post-licensing requirement, brokers return to the standard 16-hour CE cycle.
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.
A real estate agent must work under a licensed broker, while a broker can work independently, hire agents, and oversee transactions. In Tennessee, the entry-level license is called an "affiliate broker," which is equivalent to what most states call a salesperson or agent. Brokers must meet additional requirements beyond the affiliate broker license, including 120 hours of approved education (30 of which must be an Office/Broker Management course) and 24 to 36 months of active licensing experience, depending on when the candidate was first licensed.
The affiliate broker and broker licenses cover all property types. There is no separate commercial real estate license in Tennessee.
Tennessee does not offer a separate license for commercial real estate. The path to practice commercial real estate is the same affiliate broker license that covers all real estate activity in the state. Candidates must be at least 18 years old, hold a high school diploma or equivalent, and complete 90 hours of pre-licensing education: a 60-hour Basic Principles course before sitting for the PSI exam and a 30-hour Course for New Affiliates before license issuance. After passing both the national and state sections of the exam with a minimum score of 70%, the candidate submits the $91 application through CORE at core.tn.gov, affiliates with a sponsoring broker, and obtains errors and omissions insurance to activate the license.
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.
A real estate agent (called an "affiliate broker" in Tennessee) must work under a licensed broker and cannot practice independently. A real estate broker has completed additional education, including 120 classroom hours with a 30-hour Office/Broker Management course, and has held an active license for at least 24 to 36 months depending on licensing date. A REALTOR® is a licensed real estate professional who has joined the National Association of REALTORS® (NAR), pays membership dues, and agrees to abide by NAR's Code of Ethics; not all agents or brokers are REALTORS®.
All REALTORS® are licensed real estate professionals, but not all real estate agents are REALTORS®. A REALTOR® is a member of the National Association of REALTORS® (NAR) who has joined a local REALTOR® association, paid membership dues, and agreed to abide by the NAR Code of Ethics. A real estate agent is anyone licensed to facilitate real estate transactions, regardless of NAR membership.
A REALTOR® is a licensed real estate professional who has joined the National Association of REALTORS® (NAR) through a local association and agreed to abide by NAR's Code of Ethics. A real estate broker is a licensee who has met additional education and experience requirements and can work independently, hire agents, and supervise transactions. All REALTORS® are licensed real estate professionals, but not all licensed agents or brokers are REALTORS®. To become a REALTOR®, a licensed agent or broker must join a local REALTOR® association and pay membership dues, which automatically provides membership in the state and national associations.
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.
Sources
- TREC — Broker LicensingGovernmentAugust 2026
- TN Commerce Support — Pre-License FAQGovernmentMay 2026
- TN TREC — Approved CoursesGovernmentAugust 2026
- Tennessee Real Estate Commission (TREC) — Worksheet A, Out of State Application (IN2061, May 2023)EducationAugust 2026
- TN TREC — PSI Exam InfoGovernmentMay 2026
- TREC — License FeesGovernmentMay 2026
- NAR — Agent vs. RealtorEducationMay 2026
- BLS OOH — RE Brokers & AgentsGovernmentMay 2026