Body Corporate wins levy recovery case at Tenancy Tribunal
📌 In brief
The Tenancy Tribunal ruled in favour of the claimant, ordering the unit owner to pay unpaid levies, interest, and costs. The Body Corporate had determined the levies payable and the unit owner's share according to their utility interest. Despite the owner's claim of a historical agreement allowing late payments, the Tribunal found the owner liable for the levies, interest, and costs.
⚖️ Legal holding
A unit owner must pay all levies and outgoings payable for the unit as determined by the Body Corporate.
📖 What the law says
A body corporate can decide how much money is needed for its funds and then charge unit owners levies to build up and maintain these funds. For operating, long-term maintenance, and contingency funds, these levies are calculated based on each unit owner's utility interest.
A body corporate must set a due date for levy payments. If a levy is not paid, the unpaid amount, along with any reasonable costs to collect it, can be recovered as a debt from the person who owned the unit when the levy was due or the current unit owner.
If a unit owner owes money to the body corporate under certain sections, interest will be added to the unpaid amount. This interest charged by the body corporate cannot be more than 10% per year.
When the Tenancy Tribunal hears and decides a unit title dispute, it generally follows the procedures outlined in Part 3 of the Residential Tenancies Act 1986, with some specific exceptions. In these cases, any mention of 'this Act' in the Residential Tenancies Act 1986 should be understood as referring to the Unit Titles Act 2010.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The claimant successfully recovered unpaid levies, interest, and costs from the unit owner.
📜 Headnote Official document
The Tenancy Tribunal ruled in favour of the claimant, ordering the unit owner to pay unpaid levies, interest, and costs. The Body Corporate had determined the levies payable and the unit owner's share according to their utility interest. The owner did not dispute the levies but claimed a historic informal arrangement allowing late payments. The Tribunal found the owner liable for the levies, interest, and costs.
📚 Full judgment Official document
__________________________________________________________________________________ 9060504 1
[2025] NZTT 9060504
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner
UNIT ADDRESS: Unit/Flat C & E, [ADDRESS], [POSTCODE]
ORDER
1. [COMPANY] must pay [NAME] $16,709.46 immediately, calculated as follows:
Ordinary Levy Unit C $4,662.84 Ordinary Levy Unit E $4,662.84 BC debt collection Unit C $363.40 BC debt collection Unit E $363.40 Legal costs – including company restoration
$4,962.46
Appearance at hearing - counsel $287.50 Interest Unit C $453.51 Interest Unit E $453.51 Filing Fee $500.00 Total award $16,709.46 Total payable by Respondent to Applicant
$16,709.46
__________________________________________________________________________________ 9060504 2
Reasons:
1. Both parties attended the hearing. [NAME] of [NAME] represented the [NAME] under instruction. [NAME] represented the owner. The telephone numbers provided for calling the owner did not connect or were a wrong number. The actual number later successfully used was as referenced and extracted from previous BC communication provided as evidence. This telephone number confusion would have been a bigger issue except the email address used to date was confirmed as correct and the opportunity for the owner to engage earlier, including to clarify the preferred contact number, was available.
2. The [NAME] has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner.
3. The owner did not dispute the levies but claimed a historic informal arrangement that it could pay levies at the end of the invoiced period, rather than at the commencement or as invoiced.
4. In March 2024 the BC issued a demand for levies and costs. The costs included debt collection and the owner wanted the BC is remove that cost. It did not.
5. No resolution was reached and the dispute was referred by the [NAME] to [NAME] to resolve.
Does the Unit Owner owe the levies claimed?
6. A unit owner must pay all [NAME] levies and outgoings payable for the unit. See sections 80(1)(f) and 121(1) Unit Titles Act 2010.
7. The [NAME] has determined the levies payable and unit owner's share has been calculated according to their utility interest.
8. The [NAME] has fixed the due date for the levies to be paid, and the unit owner has not paid the levies by that date. See section 124(1) Unit Titles Act 2010. The [NAME] has provided records to prove the amount claimed.
Is the Unit owner liable for interest?
9. 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. See section 128 Unit Titles Act 2010.
10.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 date to the hearing date.
__________________________________________________________________________________ 9060504 3
Is the Unit owner liable for costs?
11.Pursuant to section 124 UTA, and as resolved at meetings of the [NAME], 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 (of the District Court and Court of Appeal respectively) in [NAME] 162791 v [NAME] DC Auckland, CIV2014-004- 0120, 24 June 2014 and [NAME] 162791 v Gilbert [2015] NZCA 185, 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. I am satisfied that the costs ordered above are reasonable. I equally accept the owner is frustrated at the cost but they have been incurred and invoiced correctly. An earlier resolution would have reduced the cost inflation evidenced.
12.Because the [NAME] has succeeded with the claim I have reimbursed the filing fee. Section 176(1) Unit Titles Act 2010 and section 102(4) Residential Tenancies Act 1986.
[NAME] 10 March 2025
__________________________________________________________________________________ 9060504 4
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 [NAME] 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
- The unit owner must pay all levies and outgoings for the unit as determined by the Body Corporate.
- The Body Corporate proved the amount of interest owing from the due date to the hearing date.
- The Body Corporate is entitled to recover reasonable costs incurred in collecting unpaid levies.
- The costs ordered were considered reasonable by the Tribunal.
- The Body Corporate succeeded with its claim, so the filing fee was reimbursed.
❌ Tends to be rejected
- The owner's claim of a historic informal arrangement to pay levies at the end of the invoiced period was not accepted.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal ruled in favour of the claimant, ordering the unit owner to pay unpaid levies, interest, and costs.
What was the dispute about?
The dispute was about whether the unit owner owed unpaid levies, interest, and costs to the Body Corporate.
How did the court decide, and why?
The court decided in favour of the claimant, finding that the unit owner was responsible for paying the levies, interest, and costs as determined by the Body Corporate.
Which laws or rules were applied?
The Unit Titles Act 2010, sections 80(1)(f), 121(1), 124(1), 128, and 176(1) were applied.
What was the argument that mattered most?
The argument that mattered most was that the unit owner must pay all levies and outgoings payable for the unit as determined by the Body Corporate.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case.
What does this mean for someone in a similar situation?
For someone in a similar situation, it means that they must pay all levies and outgoings payable for the unit as determined by the Body Corporate, regardless of any informal agreements.
What evidence or documents mattered?
The evidence and documents that mattered included records proving the amount of levies claimed and the Body Corporate's determination of the levies payable.