From Palestinians' point of view, the law [Israel's Absentee Property Law] has always been controversial. The rights of refugees are a core issue in their conflict with Israel.

Refugees' assets
 
Israel's Absentee Property Law was passed in 1950.

After the war that followed the creation of the state, it was the main legal mechanism used to take over homes and land that belonged to hundreds of thousands of Palestinians who had fled or were displaced.

"It was very important. It was the first step to take control of the assets of the Palestinian refugees after the 1948 war," says Professor Haim Sandberg, a land law expert at Israel's College of Management.

"When some years passed, the assets were sold to the Israel Development Authority and Jewish National Fund. Money was paid to the Ministry of Finance and they are holding the money maybe to one day compensate the former Palestinian refugees."

From Palestinians' point of view, the law has always been controversial. The rights of refugees are a core issue in their conflict with Israel.

However, thousands more Palestinians who live in the West Bank but own property in East Jerusalem could be affected by a Supreme Court decision expected after a hearing on Tuesday.

The court is considering appeals in four cases, including that of the Cliff Hotel, where the Absentee Property Law has been applied. This may set a new precedent for its continued use.

Israel captured East Jerusalem in the 1967 war. Its annexation of the area is not recognised under international law.

Many of the Palestinians recently labelled as "absentees" have been cut off from their land by new structures like roads to Jewish settlements and Israel's separation barrier in and around the West Bank...

BBC NEWS: Israeli court considers landmark property law cases

http://www.bbc.co.uk/news/world-middle-east-22608104

The Cliff Hotel is on a hill in a strategic location in Abu Dis, on the outskirts of Jerusalem

An Israeli border guard gives a warning shout as we approach the Cliff Hotel at Abu Dis, on the edge of Jerusalem.

"We're too close now. I'm not comfortable. They are monitoring us from the roof and I don't want to provoke anyone," Ali Ayyad tells me.

The large building, erected by his father in 1954, was originally for residential use. It was converted into a hotel in the 1960s, and for many years Mr Ayyad was the manager.

"This is where I met my wife and many of my long-time friends. My daughters came here after they were born. We lived on the third floor. It was not just a home, it was a way of life," he recalls.

"It's got one of the most gorgeous views of Jerusalem you can imagine. We had 36 bedrooms and bathrooms and guests came from all across Europe. We had a beautiful garden with olive trees. Now that's destroyed."

In 1996, as the hotel was being renovated in a period of optimism following the Oslo Peace Accord, the Israeli army took it over citing a security need. However, it later withdrew after legal challenges.

Since 2003, the owners have faced several further attempts by Israeli authorities to seize the building. They are currently classed as "absentees" and the Custodian of Absentee Property controls the hotel. ...READ MORE 

[AS ALWAYS PLEASE GO TO THE LINK TO READ GOOD ARTICLES IN FULL: HELP SHAPE ALGORITHMS (and conversations) THAT EMPOWER DECENCY, DIGNITY, JUSTICE & PEACE... and hopefully Palestine]