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 filing fees. The decision was based on the Unit Titles Act 2010, which mandates that unit owners must pay all levies and outgoings.
⚖️ Legal holding
A unit owner is liable for unpaid levies, interest, costs, and filing fees.
📖 What the law says
This rule states that a body corporate must set a due date for levy payments. It also says that any unpaid levy, plus reasonable collection costs, can be recovered as a debt from the person who owned the unit when the levy was due, or the person who owns it when legal action begins.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The claimant successfully recovered levies, interest, costs, and filing fees 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 filing fees. The decision was based on the Unit Titles Act 2010, which mandates that unit owners must pay all levies and outgoings.
📚 Full judgment Official document
__________________________________________________________________________________ 9065864 1
[2025] NZTT 9065864
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner
UNIT ADDRESS: Unit/[ADDRESS], [POSTCODE], [ADDRESS]
1. [NAME] must pay [NAME] $11,749.37 immediately, calculated as follows:
Descriptions Applicant Respondent
Levies fixed as per 2023 and 2024 AGM $8,223.18 Rubbish removal $395.60 Solicitors’ fees $987.98 BC manager debt recovery charges $584.00 Attendance at hearing by solicitor $56.00 Filing Fee $500.00 Attendance by BC manager $50.00 Total award $10,796.76 Total interest $952.61 Total award with interest $11,749.37 Total payable by [NAME]
$11,749.37
__________________________________________________________________________________ 9065864 2
Reasons:
1. The [NAME] attended the hearing by telephone, represented by counsel and the [NAME] manager. The unit owner did not attend. I rang the owner twice. I am satisfied that the owner was notified of the hearing by email pursuant to the Residential Tenancies (Unit Title Disputes) Rules 2011.
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.
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 date for the levies to be paid, and the unit owner has not paid the levies by that date (section 124(1) of the Unit Titles Act 2010). The [NAME] has provided records to prove the amount claimed.
Is the Unit owner liable for interest?
6. 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.
7. 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?
8. Pursuant to section 124, 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]. 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.
9. I have allowed for 15 minutes’ attendance at the hearing today at counsel’s hourly rate of $195.00 plus GST and the [NAME] manager’s hourly rate of $175.00 plus GST.
10.There is also a claim for rubbish removal costs. The owner’s tenant left rubbish in the common area which had to be removed. This was a breach of the [NAME] rules. Section 127 of the Unit Titles Act 2010 applies. This provision
__________________________________________________________________________________ 9065864 3
covers work the [NAME] was required to do because of a breach of the [NAME] rules by the owner or his tenant.
Filing Fee
11.Because the [NAME] has succeeded with the claim I have reimbursed the filing fee.
[NAME] 23 May 2025
__________________________________________________________________________________ 9065864 4
Please read carefully:
SHOULD YOU REQUIRE ANY HELP OR INFORMATION REGARDING THIS MATTER PLEASE CONTACT UNIT TITLE SERVICES [PHONE].
MEHEMA HE PĀTAI TĀU E PĀ ANA KI TENEI TAKE, PĀTAI ATU KI TE TARI UNIT TITLE SERVICES [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 UNIT TITLE SERVICES [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 did not attend the hearing, despite being notified by email.
- The body corporate proved the amount of unpaid levies with provided records.
- The body corporate had resolved to charge interest at 10% per annum on unpaid levies.
- The costs incurred by the body corporate in collecting unpaid levies were deemed reasonable.
- The unit owner's tenant left rubbish in a common area, breaching body corporate rules.
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 respondent to pay unpaid levies, interest, costs, and filing fees.
What was the dispute about?
The dispute was about the respondent's refusal to pay levies, interest, costs, and filing fees owed to the claimant.
How did the court decide, and why?
The court decided in favour of the claimant because the respondent failed to pay the levies by the due date, and the claimant provided proof of the amounts owed.
Which laws or rules were applied?
The Unit Titles Act 2010 was applied, specifically section 124, which mandates that unit owners must pay all levies and outgoings.
What was the argument that mattered most?
The argument that mattered most was the claimant's proof of the unpaid levies and the respondent's failure to pay by the due date.
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 filing fees through the Tenancy Tribunal.
What evidence or documents mattered?
The evidence that mattered included records proving the amount of levies owed and the due dates for payment.
