Israel uses "state land" to mean "not private land" and, therefore, it claims the right to cherry-pick that land. Unfortunately for Israel, that claim runs afoul of Article 55 of the Hague Regs, which expressly forbids an occupying power from administering "public land" under any other rules but the rules of usufruct. "Selling off" state land to individual Israeli colonists clearly violates the rules of usufruct. This is I.L.L.E.G.A.L.
U.S. State Dept. condemns 'vicious terrorist attack' that killed Palestinian infant (Haaretz)