Lex loci rei sitae is a fancy Latin phrase that means "the law of the place where the thing is situated." Let's say you have a toy car, and you want to know what the rules are for playing with it. The rules will depend on where you're playing with the car. If you're playing with it at your friend's house, their rules might be different than if you're playing with it at your own house.
Similarly, laws can vary depending on where you are. Lex loci rei sitae tells us that if something happens to a thing, like a piece of land or a building, or if a dispute arises about that thing, the law that applies is the law of the place where that thing is located. So if a building catches on fire in one country, the laws that apply to that situation will be the laws of that country.