It's Jordanian land that Jordan abandoned and does not seek to claim. Hence it does not satisfy any definition of occupied territory. And even under the nonsensical notion that it is, international law only stipulates that forced transfer of population is prohibited. It does not under any circumstance prohibit private individuals from building if they so choose.
Islamists dominate cities in Morocco local elections (AP)
from the article: Thank you, Eli Yishai, for exposing the peace process masquerade