If the property once belonged to an Israeli, when the year of jubilee rolls around , the property reverts to the original Israelite owner. The properties (houses) in the cities can be reclaimed by the original owner but after the first anniversary, the sale becomes permanent. However this last stipulation only applies to houses in the city. I believe that the correct interpretation would hold that also means only the houses in the old (ancient) city limits--not the modern city limits. Somebody with a better understanding of the ancient property laws help me out a little bit, okay?
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from the article: State eyes 'legal' takeover of abandoned East Jerusalem properties