Body Corporate wins levy recovery case at Tenancy Tribunal
📌 In brief
In a recent Tenancy Tribunal case, the Body Corporate successfully recovered unpaid levies, interest, costs, and filing fees from a unit owner. The Tribunal found that the unit owner was responsible for paying all levies and outgoings as determined by the Body Corporate, including interest and costs.
⚖️ Legal holding
A unit owner must pay all levies and outgoings payable for the unit as determined by the Body Corporate.
📖 Technical summary
The claimant successfully recovered unpaid levies, interest, costs, and filing fees from the respondent.
📜 Headnote Official document
The Tenancy Tribunal ruled that a unit owner must pay all levies and outgoings payable for the unit as determined by the Body Corporate, including interest and costs. The Tribunal awarded the Body Corporate $5,038.33, including unpaid levies, interest, costs, and filing fees.
📚 Full judgment Official document
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[2025] NZTT 9063244
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
RESPONDENT: [redacted]
UNIT ADDRESS: Room 1004, Unit/[ADDRESS], [POSTCODE]
ORDER
1. [NAME] must pay [NAME] $5,038.33 immediately, calculated as follows:
Descriptions Applicant
Unpaid levies as at 14 May 2025 $1,698.71 [NAME] collection costs $150.00
Solicitor costs $2,637.50 Interest to 14 May 2025 $52.12 Filing Fee $500.00 Total award $5,038.33 Total payable by Respondent to Applicant
$5,038.33
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Reasons:
1. [NAME] attended the hearing for the [NAME] which was held by way of video conference. The unit owner, [NAME], did not attend the hearing or request an adjournment.
2. The [NAME] has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner.
Does the unit owner owe the levies claimed?
3. A unit owner must pay all [NAME] levies and outgoings payable for the unit: sections 80(1)(f) and 121(1) of the Unit Titles Act 2010 (the Act).
4. The [NAME] has determined the levies payable, and the unit owner’s share has been calculated according to their utility interest.
5. The [NAME] has fixed the due dates for the levies to be paid and, while [NAME] has made some payments towards the outstanding levies, he has not paid the amounts due in full by the due dates: section 124(1) of the Act.
6. The [NAME] has provided records to prove the amount claimed.
Are the unit owners liable for interest?
7. If a unit owner fails to pay levies by the due date, interest accrues on the unpaid balance. A [NAME] may charge interest up to 10% per annum: section 128 of the Act.
8. The [NAME] has resolved to charge interest at 10% per annum on unpaid levies. The [NAME] has proved the amount of interest owing from the due dates to the hearing date.
Is the unit owner liable for costs?
9. Pursuant to section 124 of the Act the [NAME] is entitled to recover any reasonable costs incurred by it in collecting unpaid levies as a debt due by the owner to the [NAME]. In accordance with the judgments in [NAME] 162791 v [NAME] DC Auckland, CIV2014-004-0120, 24 June 2014, [NAME] 162791 v Gilbert [2015] NZCA 185, and more recently [NAME] 346799 v Gueirard [2023] NZDC 19645, the Tribunal must order that the reasonable costs incurred by the [NAME] in recovering the levies, objectively assessed, be paid by a defaulting unit owner.
10. The documents provided by the [NAME], the invoices issued by the solicitors acting for the [NAME], and the supporting time sheets outline
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the work completed and the time spent in attempting to recover the unpaid levies. I am satisfied that the costs claimed are reasonable.
11. The [NAME] has been fully successful in its claim and is therefore entitled to payment of the filing fee: Section 176(1) of the Act and section 102(4) Residential Tenancies Act 1986.
R Merrett 12 June 2025
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Please read carefully:
SHOULD YOU REQUIRE ANY HELP OR INFORMATION REGARDING THIS [COMPANY] [PHONE].
MEHEMA HE PĀTAI TĀU E PĀ ANA KI TENEI TAKE, PĀTAI ATU KI TE [COMPANY] [PHONE].
AFAI E TE MANA’OMIA SE FESOASOANI E UIGA I LENEI MATAUPU FA’AMOLEMOLE IA FA’AFESO’OTAI’I LOA LE OFISA O LE [COMPANY] [PHONE].
Rehearings:
You may make an application to the Tenancy Tribunal for a rehearing. Such an application must be made within five working days of the order and must be lodged at the Court where the dispute was heard.
The only ground for a rehearing of an application is that a substantial wrong or miscarriage of justice has or may have occurred or is likely to occur. Being unhappy or dissatisfied with the decision is not a ground for a rehearing. (See ‘Right of Appeal’ below).
Right of Appeal:
If you are dissatisfied with the decision of the Tenancy Tribunal, you may appeal to the District Court. You only have 10 working days after the date of the decision to lodge a notice of appeal.
However, you may not appeal to the District Court:
1. Against an interim order made by the Tribunal. 2. Against an order, or the failure to make an order, for the payment of money where the
amount that would be in dispute on appeal is less than $1,000. 3. Against a work order, or the failure to make a work order, where the value of the work
that would be in dispute on appeal is less than $1,000.
There is a $200.00 filing fee payable at the time of filing the appeal.
Enforcement:
Where the Tribunal made an order that needs to be enforced then the party seeking enforcement should contact the Collections Office of the District Court on [PHONE] or go to www.justice.govt.nz/fines/civil-debt for forms and information.
Notice to a party ordered to pay money or vacate premises, etc:
Failure to comply with any order may result in substantial additional costs for enforcement. It may also involve being ordered to appear in the District Court for an examination of your means or seizure of your property.
http://www.justice.govt.nz/fines/civil-debt
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- Unpaid levies must be paid as determined by the Body Corporate.
- Interest can be charged up to 10% per annum on unpaid levies.
- Reasonable costs incurred in collecting unpaid levies are recoverable.
- The filing fee is recoverable if the Body Corporate is fully successful in its claim.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal decided that the unit owner must pay all levies and outgoings as determined by the Body Corporate, including interest and costs.
What was the dispute about?
The dispute was about whether the unit owner owed unpaid levies, interest, costs, and filing fees to the Body Corporate.
How did the court decide, and why?
The court decided in favour of the Body Corporate because the unit owner failed to pay the levies by the due dates, and the Body Corporate had incurred costs in attempting to collect the unpaid levies.
Which laws or rules were applied?
The Unit Titles Act 2010 and the Residential Tenancies Act 1.986 were applied, specifically sections 80(1)(f), 121(1), 124(1), 128, and 176(1).
What was the argument that mattered most?
The argument that mattered most was that the unit owner must pay all levies and outgoings as determined by the Body Corporate, including interest and costs.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case, the Body Corporate.
What does this mean for someone in a similar situation?
For someone in a similar situation, it means they must ensure they pay all levies and outgoings by the due dates to avoid interest and costs.
What evidence or documents mattered?
The evidence and documents that mattered included records proving the amount claimed, invoices issued by solicitors, and supporting time sheets outlining the work completed and time spent in attempting to recover the unpaid levies.