Claimant Wins Recovery of Unpaid Levies in Tenancy Tribunal Case
📌 In brief
In a recent Tenancy Tribunal case, a unit owner was ordered to pay unpaid levies, interest, and costs to the claimant. The claimant had proven the amount owed and the tribunal ruled in favour of the claimant under the Unit Titles Act 2010.
⚖️ Legal holding
A unit owner is liable for unpaid levies, interest, and costs under the Unit Titles Act 2010.
📖 What the law says
This section allows a body corporate to decide how much money is needed for its funds and to charge unit owners levies to create and maintain these funds. These levies are calculated based on each unit owner's utility interest for operating, long-term maintenance, and contingency funds, and on their ownership interest for capital improvement funds.
This section states that a body corporate must set a due date for levy payments. Any unpaid levy, along with 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.
This section explains that if a unit owner owes money to the body corporate under certain sections (including those related to levies), interest will be charged on the unpaid amount. The interest rate charged by the body corporate 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, and costs from the unit owner.
📜 Headnote Official document
The Tenancy Tribunal ruled that a unit owner must pay unpaid levies, interest, and costs to the claimant under the Unit Titles Act 2010. The claimant had successfully proven the amount owed and the tribunal ordered immediate payment.
📚 Full judgment Official document
__________________________________________________________________________________ 9063664 1
[2025] NZTT 9063664
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner, Owner
UNIT ADDRESS: Unit/Flat 15C, 10-[ADDRESS], [POSTCODE], The Workshops
ORDER
1. [NAME], [COMPANY] must pay [NAME] $14,079.84 immediately, calculated as follows:
Descriptions Applicant Respondent
Unpaid Levies $7,819.12 [NAME] Manager's debt collection charges
$1,046.50
Section 124 costs, including GST & disbursements
$3,930.69
Appearance at hearing (1 hour @ $250.00 per hour plus GST)
$287.50
Filing fee $500.00 Interest to 3 June 2025 $496.03 Total award $14,079.84 Total payable by Respondent to Applicant
$14,079.84
Reasons:
1. The applicant attended the hearing which was held by video conference on 3 Jun 2025. The respondent did not attend. Attempts were also made by the Tribunal to contact the respondent by telephone but without success. I am satisfied that
__________________________________________________________________________________ 9063664 2
adequate service of the hearing notice had been completed and proceeded with the hearing in the respondent’s absence.
2. [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. [NAME] has determined the levies payable and Unit Owner's share has been calculated according to their utility interest.
5. [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. [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. See section 128 Unit Titles Act 2010.
7. [NAME] has resolved to charge interest at 10% per annum on unpaid levies. [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 UTA, 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] 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 [NAME] in recovering the levies, objectively assessed, be paid by a defaulting Unit Owner.
9. I am satisfied that the costs ordered above are reasonable.
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10.As [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] 09 June 2025
__________________________________________________________________________________ 9063664 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
- Unpaid levies must be paid by the unit owner as per the Unit Titles Act 2010.
- Interest can be charged up to 10% per annum on unpaid levies.
- Reasonable costs incurred in collecting unpaid levies can be recovered from the unit owner.
- The filing fee is reimbursable if the claim succeeds.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The decision ruled that the unit owner must pay the claimant for unpaid levies, interest, and costs.
What was the dispute about?
The dispute was about the unit owner failing to pay levies as required by the Unit Titles Act 2010.
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 date, and the claimant had provided proof of the amount owed.
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 proof of the unpaid levies and the calculation of interest and costs.
Was the decision for or against the person who brought the case?
The decision was for the claimant.
What does this mean for someone in a similar situation?
Someone in a similar situation can seek recovery of unpaid levies, interest, and costs if they can provide proof of the amounts owed.
What evidence or documents mattered?
The evidence that mattered included records proving the amount of levies owed and the calculation of interest and costs.