Even though the entire Land of Israel was divided among the tribes, the city of Jerusalem is owned by all Jews and no one has a private stake in it. This applies to the land itself and not to the structures that are built on it. The buildings belong to whoever bought them.
The communal ownership of the land has certain interesting halachic ramifications. For example:
1. Since all who ascended to Jerusalem on the pilgrimage festivals (regalim) were partial owners of the land, they could not be charged rent for their stay in Jerusalem. Nevertheless, it was in the interest of the locals to house the pilgrims, because they would benefit by receiving the skins of the sacrifices offered. Nowadays, though, no one can get out of paying for their stay in a hotel in Jerusalem. This is because in the meantime, non-Jews captured the land, and the Jews who later bought it are no longer obligated to subsidize the pilgrimages of the entire Jewish people.
2. Throughout the Land of Israel, one is not permitted to have a balcony that extends into the public domain. Rather, a person must limit his construction to his private property. However, in Jerusalem one is not permitted to build a balcony even on his own property, because the land belongs to everyone.
3. There is an additional special law pertaining to Jerusalem. Kilns are not allowed there (on account of the unsightly smoke). Actually, halacha does not allow a kiln within fifty cubits of any city in Israel. What is different about Jerusalem is that since no individual owns any part of it, no one would have been able to insist that his neighbor move his kiln outside the city limits if there weren’t a special ordinance to that effect.
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