East Jerusalem isn't "Israeli territory", it is "Israeli-occupied territory". So "Israeli law" can't be "violated" there, precisely because it is illegal for an occupying power to apply its own domestic civil law to an occupied territory. It is int'l humanitarian law that applies, and that has no prohibition on protected persons (i.e. the occupied) putting a roof over their head.
U.S. asks Uzbekistan to join anti-ISIS coalition (Reuters)
from the article: Jerusalem orders demolition of apartment buildings in Arab neighborhoods