Requirements For Courses

(1) The applicant shall demonstrate to the satisfaction of the Commission that each course submitted for approval will: (a) Cover subjects which are reasonably related to the practice of real estate and suitably advanced to benefit and enrich the students enrolled; (b) Be conducted in a facility which contains adequate space, seating, and equipment; EDUCATIONAL REQUIREMENTS CHAPTER 1260-05 (c) Consist of no fewer than two (2) classroom hours; and (d) Incorporate appropriate methods for determining whether a student has successfully completed such course. Such methods shall include, but not be limited to: 1. A minimum attendance requirement of eighty percent (80%), except that such requirement shall be one hundred percent (100%) if the course consists of eight (8) or fewer classroom hours. 2. Provisions to make up for all classes missed by a student; and 3. A minimum passing requirement of seventy percent (70%) and a comprehensive final examination (or equivalent measure of achievement), if the course consists of more than eight (8) classroom hours. However, courses taken by affiliate brokers or brokers of eight (8) classroom hours or less may be approved for continuing education or post licensing credit without a comprehensive final examination being given. (2) Each hour of classroom instruction required by T.C.A. § 62-13-303 shall consist of fifty (50) minutes of actual instruction. (3) There shall be a sixty (60) hour course in basic principles required of all applicants for an affiliate brokers license under T.C.A. § 62-13-303. The “basic principles of real estate” course required of applicants for affiliate broker’s licenses by T.C.A. § 62-13-303 shall include significant instruction in the following areas: (a) The real estate business (b) The agency relationship (c) Contracts (listings; leases; sales) (d) Governmental controls on real estate, including the Tennessee Real Estate Broker License Act (e) Legal aspects of real estate (f) Real estate mathematics (g) Real estate valuation (h) Real estate finance (i) Listing, offer to purchase, and settlement forms (j) Tennessee real estate laws, rules, practice, etc. (k) Fair housing (l) Any additional subject which the Commission may require by reasonable written notice to course sponsor and/or instructor. (4) The “office or brokerage management” course required of applicants for broker’s licenses by T.C.A. § 62-13-303 shall include significant instruction in the following areas: (a) Overview of theories, processes, and functions of management EDUCATIONAL REQUIREMENTS CHAPTER 1260-05 (b) Review of contracts and closing statements (c) Transition to management role (d) Planning; policy-making; setting objectives (e) Organizing and staffing (f) Recruiting, selecting, training, and retaining sales and office personnel (g) Written instruments; policy and procedures manual; contract between independent contractor and broker, and contract between salesperson-employee and broker (h) Financial systems and records (i) Processes, procedures, and methods of control (j) Stages of development in real estate firms (k) Market analysis (l) Horizontal and vertical expansions (m) Mergers and acquisitions (n) Governmental controls on real estate including the Tennessee Real Estate Broker License Act (o) Any additional subject which the Commission may require by reasonable written notice of the course sponsor and/or instructor. (5) (a) Effective January 1, 1993, the content of all courses approved by the Commission for continuing education shall be directly related to the following topics: 1. Valuation of Real Estate 2. Construction-Property condition, energy 3. Contracts 4. Agency 5. Financing Real Estate 6. Investment Real Estate 7. License Law and Rules 8. Property Management 9. Taxation of Real Estate Transaction 10. Closing and Settlement Procedures 11. Land Use, Planning and Zoning EDUCATIONAL REQUIREMENTS CHAPTER 1260-05 12. Time-shares 13. Type of Property (condo, dom, pud, zero lot line, single, pud, etc.) 14. Fair Housing 15. Antitrust 16. Ethics in Real Estate 17. Professional Liability (b) The Commission may add or delete any subject by means of reasonable written notice to the course sponsor and/or instructor. (6) A candidate for an affiliate broker license shall be deemed to have completed the 60 hour course described in paragraph (3) above if: (a) The candidate holds a college or university degree with a major or concentration in real estate and the candidate’s transcript shows successful completion of at least one 3 hour (30 hours or more of classroom instruction) course in the principles/fundamentals of real estate and at a minimum two more courses totaling at least 60 hours of classroom instruction in real estate as evidenced by the title or description of the course; or (b) The candidate holds a law degree and the law school transcript evidences successful completion of at least one 3 hour course (30 hours or more of classroom instruction) in real property and at least 60 other hours of classroom instruction in contracts and agency.