Attorney General Menachem Mazuz determined Thursday that there was not legal reason to refrain from tearing down the homes of the terrorist.
The prisoner exchange between Israel the Lebanon-based militant group Hezbollah is likely to be carried out within a week.
A senior Hamas figure said Thursday that the Islamist group refuses to pass on any additional signs of life, including tapes and letters, from captive IDF soldier Gilad Shalit.
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