Here is the reason that the LEASE is the peace plan.   Please read these sites regarding land ownership....

http://www.aish.com/dijh/Tevet_19.html
In 1901, the Jewish National Fund was founded for the purpose of purchasing settlement land in Israel.  JNF operates under the principle that the Land of Israel belongs to the entire Jewish people; based on this, the Israeli Knesset later adopted a law stating that JNF lands cannot be sold, but only leased for periods of 49 years at a time.

http://en.wikipedia.org/wiki/Jewish_National_Fund
These lands that were managed by the Jewish National Fund were taken over by the Israeli Land Administration in 1960 due to mismanagement of funds.

http://en.wikipedia.org/wiki/Israel_Land_Administration
"Ownership" of real estate in Israel usually means leasing rights from the ILA for a period of 49 or 98 years.