Claimant Wins Levy Recovery Case at Tenancy Tribunal
📌 In brief
The Tenancy Tribunal ruled in favour of the claimant, ordering the respondent to pay unpaid levies, interest, costs, and the filing fee. The decision was based on the Unit Titles Act 2010, which requires unit owners to pay all levies and outgoings.
⚖️ 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 various funds and then charge unit owners levies to create and maintain these funds. These levies are calculated based on each unit owner's share of utility or ownership 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 unit owner at the time 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 amount. This interest rate cannot be more than 10% per year.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The claimant successfully recovered unpaid levies, interest, costs, and the filing fee from the respondent.
📜 Headnote Official document
The Tenancy Tribunal ruled in favour of the claimant, ordering the respondent to pay unpaid levies, interest, costs, and the filing fee. The decision was based on the Unit Titles Act 2010, which mandates that a unit owner must pay all levies and outgoings payable for the unit.
📚 Full judgment Official document
__________________________________________________________________________________ 9065044 1
[2025] NZTT 9065044
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner
UNIT ADDRESS: Unit/Flat Unit D, [ADDRESS], [POSTCODE]
ORDER
1. [NAME] must pay [NAME] $8,617.16 immediately, calculated as follows:
Descriptions Applicant Respondent
Levy $1,562.75 Costs: [NAME] debt collection charges $287.50 Costs: s.124 Solicitor's charges $5,892.50 Interest: to 6 June 2025 $86.91 Costs: Solicitor's appearance fee $287.50 Filing Fee $500.00 Total award $8,617.16
Total payable by Respondent to Applicant
$8,617.16
__________________________________________________________________________________ 9065044 2
Reasons:
1. Both parties attended the video hearing on 6 June 2025.
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. See sections 80(1)(f) and 121(1) Unit Titles Act 2010.
4. At the heart of this matter is a dispute over whether levies, which the [NAME] says were owing from 2018, have been paid. The [NAME] says that they were not paid. The owner says that they were.
5. The administration of the [NAME] changed in 2020.
6. The [NAME] says that levies owing from 2018 of $592.63 and $231.60 were never paid. The owner says that both sums were paid by cheque. Ongoing investigations have been carried out with the previous administrator of the [NAME] and the current administrator to search for evidence of the payment. No evidence of the payment has been discovered.
7. The matter has been further complicated, as statements have been issued by the [NAME] to the owner showing a nil balance owing.
8. The [NAME], having concluded from their investigations that there is no evidence that the payments were made, have deducted funds paid by the owner towards current levies and allocated those funds towards the 2018 debt and [NAME] collection costs. This has resulted in the owner being in arrears on her levy due dated 15 November 2024 for an amount of $1,562.75.
9. I queried the owner about the payments made. I asked whether she had been able to obtain evidence from her bank of the funds being paid from her account. She said that she had contacted her bank and they had indicated that they were unable to access records which were more than six years old. I do not question the owner’s evidence on this point. I do not however accept that the evidence no longer exists. The owner emphasised the point that the [NAME] was unable to find records of the payment. Proof of a negative is often impossible.
10. I accept that the delays by the [NAME] in bringing this matter to a conclusion have not assisted in the resolution of this matter.
__________________________________________________________________________________ 9065044 3
11.The levy claim before the Tribunal has at its origin a debt from 2018. As the [NAME] has the right to allocate payments towards the oldest outstanding levy as disclosed on their invoice (see [NAME] v [NAME] 381068 [2024] NZDC 539 [at 34]], the issue of any limit on the claim under the Limitation Act 2010 does not apply. The [NAME] has allocated funds, which the owner paid towards more recent levies, towards the oldest outstanding levy as it was entitled to. This has resulted in the levy before the Tribunal today being a levy due on 15 November 2024.
12. Having reviewed all of the evidence provided by the parties, I prefer the evidence of the [NAME]. The landlord was in a position, where evidence of the payment having been made could have been obtained with some diligence on her part. Having made that finding, the [NAME]’s claims for costs, interest and the filing fee follow.
13. The [NAME] has determined the levies payable and unit owner's share has been calculated according to their utility interest.
14.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?
15. 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.
16.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.
Is the Unit owner liable for costs?
17.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.
__________________________________________________________________________________ 9065044 4
18.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] 09 June 2025
__________________________________________________________________________________ 9065044 5
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 for the unit as required by law.
- The tribunal preferred the evidence provided by the applicant regarding the unpaid levies.
- The applicant had the right to apply payments towards the oldest outstanding levy.
- The unit owner did not pay the levies by the due date, making them liable for interest.
- The applicant is entitled to recover reasonable costs incurred in collecting unpaid levies.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal decided in favour of the claimant, ordering the respondent to pay unpaid levies, interest, costs, and the filing fee.
What was the dispute about?
The dispute was about whether the respondent owed unpaid levies from 2018, along with interest, costs, and the filing fee.
How did the court decide, and why?
The court decided in favour of the claimant, concluding that the respondent must pay the levies, interest, costs, and the filing fee as mandated by the Unit Titles Act 2010.
Which laws or rules were applied?
The Unit Titles Act 2010, specifically sections 80(1)(f), 121(1), 124(1), and 128 were applied.
What was the argument that mattered most?
The argument that mattered most was the claimant's assertion that the respondent must pay all levies and outgoings payable for the unit as required by 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?
For someone in a similar situation, it means that they can seek recovery of unpaid levies, interest, costs, and the filing fee if they can demonstrate that the levies were not paid as required by the Unit Titles Act 2010.
What evidence or documents mattered?
The evidence and documents that mattered included the invoices showing the levies owed, the respondent's payment history, and the claimant's records of the levies and associated costs.