Tennessee Realtor State Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

In Tennessee, a licensee’s commission is indeed subject to a brokerage split. This means that the commission earned by a real estate agent is typically divided between the agent and the brokerage they represent. This arrangement allows brokerages to support their agents with marketing, resources, and administrative assistance, while also ensuring the brokerage receives a share of the commissions generated through sales.

The structure of commissions is generally not fixed by law, allowing for flexibility based on negotiations between agents and clients as well as the agreements in place with their respective brokerages. Additionally, while market conditions can certainly influence the overall commission structure—based on what clients are willing to pay, competition, and prevailing practices—this variability reinforces the fact that commissions are not set in stone. Lastly, while it is vital for agents to communicate their commission structure to clients, it is not mandated by law to disclose all commission details upfront.