Difference between a broker and an affiliate broker in Tennessee

In Tennessee’s real estate business, two key roles often cause confusion: the broker and the affiliate broker. While both hold real estate licenses and work under the Tennessee Real Estate Commission, their responsibilities, licensing requirements, and level of independence differ significantly.

This article examines the distinctions between a broker and an affiliate broker in Tennessee, including who should choose each path and the requirements for qualifying for each license.

What is an affiliate broker in Tennessee?

An affiliate broker is the entry-level licensee in Tennessee’s real estate industry. They must work under the supervision of a licensed broker and cannot operate independently of them.

Key points:

• Must be sponsored by a principal broker to practice.
• Cannot run their own real estate office.
• Handles property listings, client interactions, and transactions under broker supervision.

To become an affiliate broker, candidates must:

• Complete a 90-hour pre-licensing education course.
• Pass the Tennessee affiliate broker licensing exam.
• Submit a license application through the Tennessee Real Estate Commission.
• Pay required fees, including a renewal fee and errors and omissions insurance.

Becoming an affiliate broker in Tennessee is the first step toward a real estate career. It requires education, passing an exam, and working under the supervision of a licensed broker. Ready to begin your journey? Learn more about the steps and requirements today.

Affiliate broker license requirements

Earning your affiliate broker license in Tennessee is a structured process designed to prepare you for a career in real estate.

Requirements include:

• Be at least 18 years old with a high school diploma or equivalent.
• Complete 90 hours of approved education courses (60 hours of fundamental principles, 30 hours of the new affiliate course).
• Pass a background check and submit fingerprints.
• Successfully pass the Tennessee affiliate broker exam.
• Apply and pay the license application fee.

Once licensed, affiliate brokers are required to complete 16 hours of continuing education every two years.

Tennessee affiliate broker exam

The Tennessee affiliate broker exam is administered by PSI and includes both national and state-specific portions.

Exam breakdown:

• National portion: Covers real estate principles, laws, financing, and agency relationships.
• State portion: Focuses on Tennessee-specific laws, the Tennessee Real Estate Commission, and legal requirements.

It’s essential to prepare using up-to-date study guides and simulated tests to ensure a passing score on the first attempt.

What does it mean to affiliate with a broker?

To affiliate with a broker means entering into a working relationship where the affiliate broker operates under the broker’s license.

This relationship includes:

• The broker supervising all real estate activities.
• The affiliate broker being legally unable to operate independently.
• Commission splits are being negotiated within the brokerage.

Affiliating with a broker is mandatory for new licensees and serves as a training ground before advancing to a broker-level license.

Becoming a broker in Tennessee

After gaining experience as an affiliate broker, you may consider becoming a real estate broker. Brokers have more freedom and can open their own offices.

Broker requirements:

• Hold an affiliate broker license for at least 36 months (or 24 months with a degree in real estate).
• Complete a 120-hour education requirement, including a 30-hour office/broker management course.
• Pass the Tennessee broker exam.
• Pay all necessary licensing and renewal fees.

Unlike affiliate brokers, brokers can hire and supervise other licensed individuals, making it ideal for professionals who want to grow their own teams.

Tennessee affiliate broker licensing exam vs broker exam

Though both exams are issued by the Tennessee Real Estate Commission, the broker exam is more advanced and emphasizes:

• Real estate office management.
• Broker responsibilities and liabilities.
• Advanced legal topics and contract management.

Passing the affiliate broker licensing exam is your first step. The broker exam comes later, once you’ve gained practical experience.

Key differences summarized

In Tennessee, affiliate brokers and brokers differ significantly in their roles and responsibilities. Affiliate brokers cannot work independently or supervise others, while brokers can do both. The education requirement is also higher for brokers, who must complete 120 hours compared to the 90 hours required for affiliate brokers. 

Additionally, the broker exam is considered more advanced, reflecting the elevated level of responsibility associated with the role. Despite these differences, both licenses must be renewed every two years.

Affiliate brokers serve as entry-level professionals in the real estate industry, while brokers assume leadership roles and exercise autonomy. Advancing to broker status requires more training and expertise, making it a natural next step for those seeking greater independence in the field.

Conclusion: Which path should you choose?

Whether you’re just entering the real estate world or seeking to advance your career, understanding the distinction between a broker and an affiliate broker in Tennessee is essential.

• If you’re starting out, becoming an affiliate broker in Tennessee gives you foundational training, supervision, and access to the industry.
• If you’re experienced and ready for more independence and responsibility, the broker license can unlock new business opportunities.

At Lexawise, we provide the tools you need to pass your licensing exam and understand each step of the process, from education to exam day. Take the next step in your real estate journey with expert prep courses and support designed to help you succeed.

Start preparing today with Lexawise, your real estate career begins here.