"Israel" is not claiming ownership of the property in question. A Jewish organization purchased the property and started developing it during the Ottoman period, and despite several changes in which country's government is in charge, there has not been any legal transfer other than a sale to another Jewish organization. The Palestinian families that currently live there were originally settled there as tenants, not owners, by the government of Jordan. They are not being evicted on the basis of their ethnicity; they are being evicted because, despite signing what amounted to a perpetual lease in the 1980s, they have made no rent payments and have made unauthorized modifications to the property (and ignored a court order to remove those modifications).
More important than the actual facts of the case is this: HOW is a legal dispute, which is working its way through a civil court system -- the same court system that ruled in favor of these Palestinian families in the 1980s -- an "incitement to violence?" I am genuinely curious to know what the argument is here.