[hmkpoker]

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In this senario the arbitator wants to null and void legal documentation, because of the simple fact the the parcel of land is not in the possesion or the control of documented owner. Is that OK, to do?

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It depends on the system of post-mortem appropriation. In New Jersey, for example, if someone dies intestate, or is legally presumed dead, the common practice is to turn the property over to his spouse; if there is no spouse, it goes to the children; if there are no children it goes to the parents; if there are no parents it goes to the siblings, then aunts, uncles, closest surviving family members etc. etc. etc....and only if there's absolutely no one connected to him in any meaningful way whatsoever, the property is taken by eminent domain. Although these are state-sanctioned rules, I imagine that any civilized ACist society would have similar rules.