Where a conveyance, grant or assignment executed under section 32 is of a house situated in—
the conveyance, grant or assignment may (unless it contains a condition of a kind mentioned in section 33(2)(b) or (c) (right of pre-emption or restriction on assignment) or a covenant as mentioned in section 36A(3)(right of first refusal for local authority)) contain a covenant limiting the freedom of the purchaser (including any successor in title of his and any person deriving title under him or such a successor) to dispose of the house in the manner specified below.
The limitation is that until such time (if any) as may be notified in writing by the local authority to the purchaser or a successor in title of his
The condition is that the person to whom the disposal is made (or, if it is made to more than one person, at least one of them) has, throughout the period of three years immediately preceding the application for consent or, in the case of a disposal by way of tenancy or licence, preceding the disposal—
or has had the one in part or parts of that period and the other in the remainder; but the region need not have been the same throughout the period.
A disposal in breach of such a covenant as is mentioned in subsection (1) is void and, so far as it relates to disposals by way of tenancy or licence, such a covenant may be enforced by the local authority as if—
Any reference in the preceding provisions of this section to a disposal by way of tenancy or licence does not include a reference to a relevant disposal or an exempted disposal.
The limitation imposed by such a covenant is a local land charge.
Where the Chief Land Registrar approves an application for registration of—
and the instrument effecting the disposition contains a covenant of the kind mentioned in subsection (1), he must enter in the register a restriction reflecting the limitation imposed by the covenant
In this section "purchaser" means the person acquiring the interest disposed of by the first disposal.