Attorney General Yehuda Weinstein on Thursday stated that his office would check if the behavior of state-employed rabbis, who signed a letter against renting to non-Jews, was "criminal."
Forty-seven state-employed rabbis signed a statement, made public Tuesday, which quotes the halachic stance against renting or selling a house or plot of land to a non- Jew in Israel.
“In response to many people’s questions, we hereby reply that it is prohibited by the Torah to sell a house or a field in the Land of Israel to a gentile,” the letter begins before proceeding to quote Maimonides, the Shulhan Aruch and other sources. The letter notes the danger of intermarriage, the potential damage to the religious beliefs of Jewish neighbors who might be influenced by non-Jews, and the damage to the value of real estate in the area.
Weinstein's letter about the rabbis' statement said that, "The Attorney General believes that the comments attributed to the rabbis are seemingly problematic in a number of ways and are not emblematic of proper public behavior,"
"The legal aspect of the incident is more complicated. The attorney general has instructed the relevant parties in his office to check the criminal and disciplinary aspects raised by the rabbis' statements."
http://www.jpost.com/JewishWorld/JewishNews/Article.aspx?id=198787