The incentives go against the rationality of the people, like with statism.
If you live in a 300k house and you go travel for ten months while the abandonment criteria is settled at one year in this community, there is a massive incentive for others to collude (especially if they fdon't like you), witness that you are out more than a year and squat your house. If 6 people collude, its a 50k bounty each. This is just one scenario where it fails, there probably are many.
Yes you can protect yourself by keeping a provable log, but what kind of society is that where you have to keep a log where you are to not lose your house, which is arguably one of the worst things that can happen.
In short: To enforce these arbitrary rules, you need surveillance, otherwise the court can't make a proper decision.