US joins UK in saying beware of buying property in the OPT
Israel, the West Bank and Gaza: Country Specific Information
Purchases of Property:
American Citizens who buy or lease property in the occupied territories of East Jerusalem, the West Bank, and Gaza may find their ownership challenged by people displaced from those lands, either as a result of the 1967 conflict or previously. Prospective property buyers should always seek legal advice before buying in these areas. The possible establishment of a Palestinian state may have legal consequences for property owners in Israeli settlements in the West Bank and in East Jerusalem.
Middle East and North Africa: Israel and the Occupied Palestinian Territories
Still current at: 05 September 2009
There are risks involved with purchasing property in Israeli settlements on land considered to be occupied under international law, in East Jerusalem, the West Bank, and the Golan. Potential purchasers should be aware that a future peace deal between Israel and the Palestinians, or between Israel and Syria, could have consequences for property they purchase in these settlements. The Foreign and Commonwealth Office does not offer legal advice on or become involved with private property disputes.
See FCO website.