Claimant Wins Recovery of Unpaid Levies and Costs
📌 In brief
The Tenancy Tribunal ruled in favour of the claimant, ordering the unit owner to pay $9,831.01 for unpaid levies, interest, costs, and the filing fee. This decision highlights the importance of paying levies on time and the ability to recover associated costs.
⚖️ Legal holding
A unit owner must pay all levies and outgoings payable for the unit, including interest and reasonable costs incurred in collecting unpaid levies.
📖 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 calculated based on each unit owner's share of the property.
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 when legal action is started.
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 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 unit owner.
📜 Headnote Official document
The Tenancy Tribunal ordered the unit owner to pay the claimant $9,831.01 for unpaid levies, interest, costs, and the filing fee, emphasising the unit owner's obligation to pay all levies and outgoings.
📚 Full judgment Official document
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[2025] NZTT 9063464
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner
UNIT ADDRESS: Car Parks 5B49 & 5B82, 118-128 Broadway, Newmarket, Auckland 1023
ORDER
1. [NAME] must pay [NAME] $9,831.01 immediately, calculated as follows:
Descriptions Applicant Respondent
Levies 1 September 2022 to 30 April 2025
$4,478.00
Interest 1 February 2023 to 23 April 2025 $631.51 BC collection fees $1,335.00 Legal fees $2,886.50 Filing fee $500.00 Total award $9,831.01 Total payable by Respondent to Applicant
$9,831.01
Reasons:
1. The hearing was conducted by telephone. Only counsel, [NAME], attended the hearing representing [NAME]. Calls to the respondent at the time of the hearing were not connected.
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2. [NAME] has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner.
Levies
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 (the Act).
4. [NAME] has determined the levies payable, and the unit owner's share has been calculated according to her utility interest.
5. [NAME] has fixed the due dates for the levies to be paid, and the Unit Owner has not paid the levies by those dates. See section 124(1) of the Act. [NAME] has provided records to prove the amount claimed.
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. See section 128 of the Act.
7. [NAME] has resolved to charge interest at 10% per year on unpaid levies. [NAME] has proved the amount of interest owing from the due date to the hearing date as ordered.
Costs
8. Under s124 of the Act, and as resolved at meetings of [NAME] is entitled to recover any reasonable costs incurred by it in collecting unpaid levies as a debt due by the owner to [NAME]. In accordance with the judgments (of the District Court and Court of Appeal respectively) in [NAME] v [NAME], CIV2014-004- 0120, 24 June 2014 and [NAME] v Gilbert [2015] NZCA 185, the Tribunal must order that the reasonable costs incurred by [NAME] in recovering the levies, objectively assessed, be paid by a defaulting unit owner.
9. I find that the legal costs claimed by [NAME] are reasonable save for the $50 claimed for office expenses. That is an overhead and I see no reason why the Unit Owner should have to pay that.
10.[NAME] is registered for GST, I have not awarded GST on the legal costs.
11.[NAME] has claimed $1,805 for collection fees. These relate to three letters for each unit sent to the respondent and instructing their lawyers. They are based on a scale of fees referred to in [NAME]’s minutes. But these costs are recoverable under s128 of the Act, and they must therefore be
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reasonable. The Tribunal is not bound to award them according to the scale. I do not regard the fees claimed as being reasonable.
12.The letters issued to the unit owners are no doubt generated automatically from information held in [NAME]’s computer system. Fees of $250 including GST per letter are not reasonable in my view. The [NAME] would not charge that much for a standard letter.
13. I have awarded collection fees based on 2 letters at $115 and one letter at $150 which includes another means of communication such a telephone call. I have awarded $287.50 for preparing instructions to the lawyers. The total in relation to both units is $1,335.
14.[NAME] has succeeded with the claim, I have reimbursed the $500 filing fee. See s176(1) of the Act s102(4) Residential Tenancies Act 1986.
R Armstrong 23 April 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
- The unit owner must pay all levies and outgoings as determined by the applicant.
- Interest can be charged up to 10% per annum on unpaid levies.
- Reasonable costs incurred in collecting unpaid levies are recoverable.
- Collection fees based on reasonable amounts are recoverable.
- The filing fee is reimbursable as part of the award.
❌ Tends to be rejected
- Collection fees based on a scale of fees deemed unreasonable by the tribunal.
- Legal costs claimed for office expenses seen as overhead and not recoverable.
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 unit owner to pay the claimant $9,831.01 for unpaid levies, interest, costs, and the filing fee.
What was the dispute about?
The dispute was about the unit owner's failure to pay levies, interest, and costs related to the management of the unit.
How did the court decide, and why?
The court decided in favour of the claimant because the unit owner failed to pay the levies by the due dates, and the claimant had incurred reasonable costs in collecting the unpaid amounts.
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 that the unit owner must pay all levies and outgoings payable for the unit, including interest and reasonable costs incurred in collecting unpaid levies.
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?
This means that someone in a similar situation can seek recovery of unpaid levies, interest, and costs from the unit owner through the Tenancy Tribunal.
What evidence or documents mattered?
The evidence included records proving the amount of levies, interest, and costs claimed by the claimant.