Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What is defined as a natural disaster or fire in real estate terms?

1. Act of God

2. Force majeure

3. Natural phenomenon

4. Critical incident

The correct answer is: Act of God

The term that is defined as a natural disaster or fire in real estate terms is referred to as an "Act of God." This phrase is commonly used to denote events that arise from natural forces that cannot be controlled or predicted, such as hurricanes, earthquakes, and fires. In legal contexts, an Act of God can be used as a defense or reason for non-performance of a contract, as these events are beyond human control and can significantly impact real estate transactions. The other terms listed have different meanings in a legal or real estate context. "Force majeure" is a broader term that encompasses not only natural disasters but also other unexpected events that prevent the fulfillment of a contract. "Natural phenomenon" generally refers to any naturally occurring event but is not typically used in legal discussions about liability or responsibility. "Critical incident" often pertains to events that require immediate response or intervention and is not specifically tied to natural disasters in real estate terms.