The Shulchan Aruch (Choshen Mishpat 369:6) rules liek the opinion that there is dina d’malchuta dina in EY and Rav Ovadia (Yechaveh Daat 5:4) and Rav Eliashiv (Piskei Din Rabbaniim vol. 6 p.376-381) pasken thatt his applies to Medinat Yisrael. In addition, many poskim hold that the Knesset and Government as elected representatives have the din of Shiva Tuvei HaIr.
One who disagrees has a problem as he cannot walk on any land or use any road that was built through eminent domain.