The order was signed by OC Central Command Maj.-Gen. Nadav Padan against the objection filed by the terrorist’s family.
The home is on the top floor of a third-story building. The family has until Dec. 18, 2018 to appeal to the High Court of Justice.
American-born Fuld, a father of four, was standing between the Gush Etzion Mall and the Rami Levi supermarket when he was stabbed multiple times in his upper body by 17-year-old Jabarin.
Mortally wounded, Fuld chased his Palestinian attacker, jumping over a short stone wall and shooting him, before collapsing. Evacuated to Jerusalem’s Shaare Zedek Medical Center, he succumbed there to his wounds.
Jabarin, who was shot by Fuld and another armed civilian, was evacuated in moderate condition and fully conscious to the same hospital as Fuld.
Following the deadly attack, the IDF carried out house-to-house searches in Yatta, questioned his relatives, and confiscated work permits and material from his home.
Jabarin was charged with intentionally causing death and a number of lesser charges by a West Bank military court in October.
A controversial tactic, Israeli officials say home demolitions are a key deterrent to stop other potential attackers, but Palestinians and human rights groups criticize the army for using collective punishment by demolishing the homes of the terrorist’s families.