Tennessee-specific study areas
Facilitator default
Unless a specific, bilateral written agency agreement is in place, a Tennessee licensee is presumed to be a facilitator — representing neither party and owing no fiduciary duties, only baseline statutory duties like honesty and disclosure of material facts.
Written agency agreement requirement
Agency is never implied by conduct in Tennessee. It must be created through a specific written agreement, and disclosure of a licensee's status must generally be confirmed in writing at defined points in a transaction.
Designated agency vs. dual agency
Designated agency lets a managing broker appoint two different affiliated licensees within the same firm to separately represent the buyer and seller, without the managing broker becoming a dual agent. True dual agency, where one individual represents both sides, requires informed written consent and is more restricted.
Advertising and firm-name prominence
Tennessee advertising rules require the firm name and phone number to be at least as prominent as an individual licensee's or team's name and number, and place restrictions on how real estate "teams" can brand themselves.
Trust money and interpleader
Affiliate brokers must promptly turn over trust money to their principal broker, and disputed earnest money that can't be resolved by agreement is handled through an interpleader process with a defined administrative deadline.
Net listing prohibition
Tennessee prohibits net listings, where a broker would keep any amount above a seller's target price as commission, because of the conflict of interest this pricing model creates.
Stigmatized-property rules
Tennessee law generally shields sellers and licensees from liability for not disclosing that a property was the site of a death or felony, distinct from required disclosures about the physical condition of a property.
Property-tax assessment ratios
Tennessee property tax math requires applying a state-mandated assessment ratio (which differs for residential, commercial, and utility property) to the appraised value before applying the local tax rate — a calculation style that trips up candidates used to a single flat-rate approach.
10-day notification rules
Tennessee enforces a recurring 10-day window for licensees to notify the Commission of certain administrative changes, such as an address change or a change in principal broker affiliation.
Where the State Portion Diverges From National Prep
These are structural Tennessee rules worth studying specifically, because generic national prep materials do not cover them. Rule citations are provided for your own verification; treat any specific number below as needing a current-source check.
- Agency default status: Tennessee's Brokerage Relationships in Real Estate Transactions Act (T.C.A. ยง 62-13-401 et seq.) makes "Facilitator" the default, non-agency status unless a written agency agreement is signed. confirm current official record against current statute text.
- Designated agency: a Principal Broker may designate one affiliated licensee to represent the buyer and a different one to represent the seller within the same firm, without the firm defaulting to dual agency. confirm current official record.
- Advertising rules: TREC's advertising rule is commonly described as requiring the firm name to appear at least as prominently as any individual agent or team name. confirm current official record against the current rule text (TREC Rule 1260-02, per secondary sources).
- Trust money handling: earnest money is generally required to be turned over to the Principal Broker promptly and deposited according to the purchase agreement's terms; commingling is a serious violation. confirm current official record of exact current timelines.
- Net listings: net-price listings are described in secondary sources as prohibited in Tennessee. confirm current official record against the current rule.
- E&O insurance: continuous coverage is required by rule, with described penalties for lapses. confirm current official record of current penalty structure.
- Recovery account: Tennessee maintains a real estate education and recovery account with per-transaction and aggregate payout caps described in secondary sources. confirm current official record of current cap amounts.
- Property-tax math: Tennessee applies an assessment-ratio step (a percentage of appraised value) before applying the local tax rate; the exact current ratios by property class need verification.
What RealReady does not claim: focus on the current official outline and rules rather than relying on fixed dollar caps, day counts, or ratios that may change. RealReady does not make pass-rate or difficulty claims.