Where, on a transfer of property, an interest therein is created absolutely in favour of any person, but the terms of the transfer direct that such interest shall be applied or enjoyed by him in a particular manner, he shall be entitled to receive and dispose of such interest as if there were no such direction.
Where any such direction has been made in respect of one piece of immovable property for the purpose of securing the beneficial enjoyment of another piece of property, nothing in this section shall be deemed to affect any right which the transferor may have to enforce such direction or any remedy which he may have in respect of a breach thereof.
Legal Commentary & Landmark Judgments: Section 11
Conditions repugnant to the estate created are legally void where an absolute interest in property is transferred subject to directions dictating how the transferee must enjoy or use the estate.
The critical statutory exception in the second paragraph protects positive and negative covenants created for the beneficial enjoyment of adjacent property retained by the transferor: a vendor dividing land may lawfully impose restrictive covenants (such as building height limits or prohibition of commercial nuisances) running with the land under the equitable doctrine of Tulk v. Moxhay.
The second paragraph of Section 11 is the statutory foundation for restrictive covenants, building scheme restrictions, and easementary negative covenants in residential layouts, empowering owners who retain adjoining plots to restrict commercial use or ensure light and air.