Claimant Successfully Recovers Unpaid Levies and Costs from Unit Owner
📌 In brief
The Tenancy Tribunal ruled in favour of the claimant, ordering the respondent to pay $20,094.43 for unpaid levies, interest, costs, and filing fees. The respondent, who lives in Taiwan, did not attend the hearing.
⚖️ Legal holding
A unit owner must pay all levies and outgoings payable for the unit as per the Unit Titles Act 2010.
📖 What the law says
A body corporate can decide how much money is needed for its funds and then charge unit owners levies to create and maintain these funds. These levies are generally calculated based on each unit owner's share of the property's utility or ownership interest.
The 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 of the Act, interest will be added to the unpaid debt. This interest rate cannot be more than 10% per year.
When the Tenancy Tribunal hears and decides a unit title dispute, it must follow most of the rules from Part 3 of the Residential Tenancies Act 1986, with some necessary changes. However, certain sections of that Act, like those about the Tribunal's jurisdiction or enforcing possession orders, do not apply.
Generally, the Tenancy Tribunal cannot order one party to pay the other's legal costs. However, it can award costs if the case was frivolous or vexatious, if a party had a lawyer, or if the dispute should have been settled by a Tenancy Mediator but a party refused without good reason.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The claimant successfully recovered unpaid levies, interest, costs, and filing fees from the respondent.
📜 Headnote Official document
The Tenancy Tribunal ordered the respondent to pay the claimant $20,094.43 for unpaid levies, interest, costs, and filing fees. The respondent resides in Taiwan and failed to attend the hearing via video link.
📚 Full judgment Official document
__________________________________________________________________________________ 9055904 1
[2025] NZTT Video Location 9055904
TENANCY TRIBUNAL AT Video Location
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner
UNIT ADDRESS: Unit/[ADDRESS], [POSTCODE]
ORDER
1. [NAME] must pay [NAME] $20,094.43 immediately, calculated as follows:
Descriptions Applicant Respondent
Levy $13,228.84 Costs: [NAME] charges $920.00 Costs: s.124 Solicitor's charges $4,079.34 Costs: Solicitor's charges for hearing time
$287.50
Filing Fee $500.00 Interest: From 1 September 2023 to 12 February 2025
$1,078.75
Total award $20,094.43
Total payable by Respondent to Applicant
$20,094.43
__________________________________________________________________________________ 9055904 2
Reasons:
1. The [NAME] attended the video hearing and was represented by Ms [NAME].
2. The owner did not attend by Teams video link. Telephone calls were made to the owner on the number provided at the allocated hearing time. The calls could not be connected.
3. The owner resides in Taiwan and has a physical address for service in Taiwan as his address for service. That address is registered with the [NAME] as an address for service for the owner. The owner does not have an agent in New Zealand. The [NAME] also has an email address for the owner. All correspondence with the owner is sent to the physical address and the email address. The owner purchased the premises in 2018. There has been no “bounce back” for communication sent to the owner’s email address. I am satisfied in those circumstances that the levy demands and notices relating to these proceedings have been served on the owner.
4. 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?
5. 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.
6. The [NAME] has determined the levies payable and unit owner's share has been calculated according to their utility interest.
7. 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?
8. 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.
9. 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.
__________________________________________________________________________________ 9055904 3
Is the Unit owner liable for costs?
10.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 have reduced the hearing fee to $287.50 to take into account the actual hearing time.
11.As the [NAME] has succeeded with the claim, I have ordered the owner to reimburse the filing fee. Section 176(1) Unit Titles Act 2010 and section 102(4) Residential Tenancies Act 1986.
[NAME] 12 February 2025
__________________________________________________________________________________ 9055904 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 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
- The unit owner must pay all levies and outgoings as required by the Unit Titles Act 2010.
- Interest at a rate of up to 10% per annum is chargeable on unpaid levies from the due date until payment.
- Reasonable costs incurred in collecting unpaid levies are recoverable from the unit owner.
❌ Tends to be rejected
- The owner's absence and lack of representation did not prevent the tribunal from making a decision.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal ordered the respondent to pay the claimant $20,094.43 for unpaid levies, interest, costs, and filing fees.
What was the dispute about?
The dispute was about the respondent's failure to pay levies for the unit, leading to interest, costs, and filing fees being added.
How did the court decide, and why?
The court decided in favour of the claimant because the respondent had not paid the levies by the due date, as required by the Unit Titles Act 2010.
Which laws or rules were applied?
Unit Titles Act 2010, s 80(1)(f) Unit Titles Act 2010, s 121(1) Unit Titles Act 2010, s 124(1) Unit Titles Act 2010, s 128 Unit Titles Act 2010, s 176(1) Residential Tenancies Act 1986, s 102(4)
What was the argument that mattered most?
The argument that mattered most was that the respondent must pay all levies and outgoings payable for the unit as per the Unit Titles Act 2010.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case, the claimant.
What does this mean for someone in a similar situation?
Someone in a similar situation should ensure they pay their levies on time to avoid interest, costs, and filing fees.
What evidence or documents mattered?
The judgment does not specify the exact evidence or documents used, but it mentions records proving the amount claimed.