The Palestinian family was forced out of the home with their belongings
Jewish settlers have taken over another house in East Jerusalem after a long legal battle with Palestinians who said they were the rightful owners.
The settlers had obtained an Israeli court order supporting their claim of ownership, and Israeli police said they had no right to intervene.
Palestinians say such moves are part of a systematic attempt by Israel to force them out of East Jerusalem.
UN chief Ban Ki-moon called on Israel "to cease such provocative actions".
Police later intervened after the settlers clashed with Palestinians and their Israeli supporters, one of whom was arrested.
Reports say 29 members of the al-Kurd family had lived in the house and were evicted by the settlers, who had hired their own security guards to remove the occupants.
They hustled an elderly Palestinian woman out of the house and threw the family's belongings into the garden.
An unconfirmed report said a police officer later ordered the settlers to bring the belongings back into the house and leave.
United Nations Secretary General Ban Ki-moon said he was "dismayed at continued Israeli actions in occupied East Jerusalem, including the demolition of Palestinian homes, the eviction of Palestinian families and the insertion of settlers into Palestinian neighbourhoods".
He described the event in East Jerusalem on Tuesday as "just the most recent incident", adding that "these actions stoke tensions, cause suffering and further undermine trust".
Israel annexed East Jerusalem in 1967 despite international opposition.