How to Get a Principal Broker in Tennessee: TREC Requirements & Compliance Guide
Tennessee's real estate commission requires a principal broker for every firm — and Nashville is one of the fastest-growing real estate markets in the country. Here's what TREC demands.
Tennessee's Principal Broker Requirement
The Tennessee Real Estate Commission (TREC) requires every real estate firm to have a principal broker. Under Tennessee Code §62-13-301 et seq., the principal broker is the licensed individual who holds the firm's license and is responsible for the supervision of all affiliated licensees and the firm's real estate activities.
Tennessee's principal broker is equivalent to what other states call a designated broker or broker of record — but the terminology matters when filing applications with TREC.
Tennessee Principal Broker Licensing Requirements
- Hold an active Tennessee real estate broker license
- Have at least 3 years of active experience as a licensed affiliate broker (salesperson) within the preceding 6 years
- Complete 120 hours of pre-licensing education for the broker upgrade
- Pass the Tennessee broker licensing examination
- Submit to a background check
- Maintain 16 hours of continuing education every 2-year renewal cycle
Why Tennessee Is a Hot Investment Market
- Nashville metro: One of the fastest-growing metros in the U.S., with massive population in-migration, corporate relocations (Oracle, Amazon, AllianceBernstein), and institutional SFR activity
- Memphis: A top-tier market for yield-focused SFR investors, with exceptional price-to-rent ratios and strong institutional presence
- Knoxville and Chattanooga: Emerging markets attracting value-oriented investors and BTR developers
- No state income tax: Tennessee eliminated its income tax, attracting both corporate and individual investment capital
- Landlord-favorable laws: Tennessee's eviction process is relatively streamlined compared to coastal states
Tennessee Regulatory Considerations
- Firm license required: Tennessee requires a separate firm license in addition to the principal broker's individual license — both must be on file with TREC
- Principal broker designation: The principal broker must be specifically designated on the firm's TREC application — an individual broker license alone is not sufficient
- Trust account requirements: TREC has specific trust account rules for earnest money and security deposits with regular audit potential
- Property management: Tennessee requires a broker license for property management — there is no separate PM license category
How 50 State Brokerage Serves Tennessee
50 State Brokerage holds an active Tennessee broker license and serves as principal broker for companies operating across Nashville, Memphis, Knoxville, and statewide. We provide full TREC-compliant supervision, MLS access in RealTracs (Nashville), MAAR MLS (Memphis), and ongoing compliance monitoring. Month-to-month engagement — covering Tennessee alongside any other states in your portfolio.