Mohammed al-Zaid, 66, whose sons own the bulldozed properties, told AFP the homes were located in a section of Area A land just north of Jericho, one of the few parts of the Jordan Valley where Palestinians can build.
He said that nonetheless the Israelis had been informed of the plans for their construction and had given their consent.
"My sons and I built in this area with the consent of the Israelis through plans presented to them by the Palestinian liaison," he said.
"I do not know why the occupation's bulldozers demolished the houses, where more than 40 people live -- my sons and grandchildren."
Chief Palestinian negotiator Saeb Erakat, who lives in Jericho, confirmed the demolitions in al-Nuweima which the Palestinians are supposed to enjoy full civil and security control.
He had informed before that Israel was seeking to displace Palestinians from the Jordan Valley, which flanks the West Bank's eastern border with Jordan, as part of a campaign to undermine peace efforts.
He said last week that Israel had "a systematic plan” for destroying efforts aimed at making peace, which involves an escalation of settlement building, a displacement of the population of the Jordan Valley, an increase of settler attacks against our people and confiscation of our land."
Jericho governor Majid al-Feytani also confirmed the houses were located in Area A and strongly condemned their demolition.
"This is a classified as Area A and we are alarmed by and strongly condemn the measures taken by the occupation authorities," he said.
The family said each house had three rooms and there was also a sheep pen at the site.