Tennessee Real Estate Commission

Tennessee Real Estate Commission (TREC) — Structure, Authority & License Law ## Why This Matters on the Exam TREC and License Law account for roughly 10–14 Tennessee-specific questions on your exam — nearly a quarter of your state section. Getting these details right is one of the fastest ways to boost your score. --- ## What Is TREC? The Tennessee Real Estate Commission (TREC) is the state agency that licenses, regulates, and disciplines real estate licensees in Tennessee. It operates under T.C.A. 62-13 (the statute passed by the legislature) and Chapter 1260 (the administrative rules TREC itself adopts). Think of the statute as the "law from the capitol" and the rules as the "day-to-day operating manual." ### Two Layers of Law | Layer | Created By | Example | |---|---|---| | Statute (T.C.A. 62-13) | Tennessee General Assembly | Defines who must be licensed | | Rules (Chapter 1260) | TREC itself | Sets advertising standards, trust account procedures | On the exam, you don't need to cite code sections — but you *do* need to know that both layers exist and that TREC has rule-making authority. --- ## TREC Composition TREC is made up of 9 members: - 7 licensed real estate professionals - 2 public (consumer) members — non-licensees who represent the public interest - All members serve 5-year terms and are appointed by the Governor > Exam tip: The "2 public members" detail trips up many candidates. The board isn't made up entirely of licensees — consumer protection is built into its structure. --- ## The Recovery Account The Tennessee Real Estate Education and Recovery Account (commonly called the Recovery Account) is a fund that compensates…