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Housing Act 1996

Housing Act 1996 s 11

s 11 Covenant for repayment of discount on disposal

(1) Where on a disposal of a house by a registered social landlord ... a discount has been given to the purchaser, ... the conveyance, grant or assignment shall contain a covenant binding on the purchaser and his successors in title to the following effect. (2) The covenant shall be to pay to the landlord such sum (if any) as the landlord may demand in accordance with subsection (3) on the occasion of the first relevant disposal which is not an exempted disposal and which takes place within the period of five years beginning with the conveyance, grant or assignment. (3) The landlord may demand such sum as he considers appropriate, up to and including the maximum amount specified in this section. (4) The maximum amount which may be demanded by the landlord is a percentage of the price or premium paid for the first relevant disposal which is equal to the percentage discount given to the purchaser in respect of the disposal of the house by the landlord. (5) But for each complete year which has elapsed after the conveyance, grant or assignment and before the first relevant disposal the maximum amount which may be demanded by the landlord is reduced by one-fifth. (6) Subsections (3) to (5) are subject to section 11A.

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