When does operation of law apply in property management?

Operation of law refers to legal principles that automatically apply to situations without the need for an agreement or other formal action. In property management, this concept is particularly relevant during significant events that alter the status of property or legal rights associated with it. The correct answer highlights scenarios such as death, bankruptcy, and destruction of the property, where automatic legal consequences come into effect.

For instance, if a property owner's death occurs, their property may be transferred to heirs without the need for additional legal action, reflecting operation of law concerning inheritance. Similarly, in the case of bankruptcy, property may be seized or liquidated under legal mandates. Lastly, if a property is destroyed—such as by fire—this can result in the termination of lease agreements and obligations under the law without further action by the parties involved.

These instances emphasize how certain legal principles govern property management and the rights and responsibilities of individuals, rendering the management agreement or the actions of the parties less relevant in those critical contexts.