A licensee may act as an agent (representing a client) or as a facilitator/transaction broker assisting parties without representation.
Before you read
Test yourself first: 5 questions
Question 1 of 5
Tennessee's brokerage law allows a single firm to represent both the buyer and the seller in the same transaction, with each party assigned a different agent in the firm so each receives full client-level representation. What is this Tennessee model called?
Answer: A. Tennessee uses designated agency, in which the principal broker appoints different affiliated licensees to represent the buyer and the seller. Each client gets full fiduciary-type representation from his or her designated agent, avoiding the conflicts of traditional dual agency.
Question 2 of 5
Which agency licenses and regulates real estate licensees in Tennessee?
Answer: A. The Tennessee Real Estate Commission (TREC) licenses and regulates real estate licensees in Tennessee. (Note: Texas also abbreviates its commission TREC.)
Question 3 of 5
Which agency is responsible for regulating real estate licensees and enforcing license law in Tennessee?
Answer: A. The Tennessee Real Estate Commission (TREC) is the state body that licenses and regulates real estate brokers and affiliate brokers and enforces the license law.
Question 4 of 5
Which agency is responsible for regulating real estate licensees in Tennessee?
Answer: A. Real estate licensing and practice in Tennessee is regulated by the Tennessee Real Estate Commission (TREC).
Question 5 of 5
Tennessee agency relationships operate under the:
Answer: A. The Tennessee Real Estate Broker License Act governs agency relationships in the state.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Tennessee uses an agency model centered on the Broker Act, including designated agency.
- A licensee may act as an agent (representing a client) or as a facilitator/transaction broker assisting parties without representation.
- Designated agency lets a broker assign different affiliated licensees to represent the buyer and the seller in the same transaction.
- Licensees owe statutory duties such as loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care to clients.
- Even without an agency relationship, licensees owe all parties honesty, fairness, and disclosure of known adverse facts.
- Agency relationships and any disclosed dual/designated arrangements should be confirmed in writing.
- Tennessee also requires the Residential Property Condition Disclosure for most residential sales.
Tennessee Agency Model Quick Reference: FAQs
Is Tennessee Agency Model Quick Reference on the real estate exam?
Yes. State License Law is a scored domain on the Tennessee real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Tennessee test this differently?
Tennessee applies its own license law on top of the national portion. This page covers the Tennessee rules specifically, which is what the state section of your exam tests.
