Claimant Wins Unpaid Levies 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. This decision was based on the Unit Titles Act 2010, which requires unit owners to pay all levies and outgoings for their units.
⚖️ Legal holding
A unit owner must pay all levies and outgoings payable for the unit under the Unit Titles Act 2010.
📖 What the law says
This rule 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 generally calculated based on each unit owner's share of the building's overall value or their share of the benefits received from common services.
This rule states that a body corporate must set a due date for levy payments. If a levy is not paid, the body corporate can recover the unpaid amount, along with any reasonable costs for collecting it, as a debt from the person who owned the unit when the levy was due or the current unit owner.
This rule explains that if a unit owner owes money to the body corporate under certain sections of the Act, 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, costs, and filing fees from the respondent.
📜 Headnote Official document
In a case before the Tenancy Tribunal, the claimant successfully recovered unpaid levies, interest, costs, and filing fees from the respondent. The Tribunal found that the respondent was required to pay all levies and outgoings payable for the unit under the Unit Titles Act 2010.
📚 Full judgment Official document
__________________________________________________________________________________ 9064244 1
[2025] NZTT 9064244
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner
UNIT ADDRESS: Unit/[ADDRESS], [POSTCODE]
ORDER
1. [NAME] must pay [NAME] $6,758.36 immediately, calculated as follows:
Descriptions Applicant Respondent
Levies 1 April 2024 to 31 March 2025 $5,337.04 Interest to 4 June 2025 $346.32 Costs $575.00 Filing Fee $500.00 Total award $6,758.36 Total payable by Respondent to Applicant
$6,758.36
Reasons:
1. Both parties attended the hearing. [NAME] and [NAME] represented [NAME].
2. [NAME] has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner, [NAME].
[NAME] unit owner owe the levies claimed?
3. A unit owner must pay all [NAME] levies and outgoings payable for the unit: sections 80(1)(f) and 121(1) of the Unit Titles Act 2010 (the Act).
__________________________________________________________________________________ 9064244 2
4. [NAME] has determined the levies payable, and [NAME]’s share has been calculated according to his utility interest.
5. [NAME] has fixed the due dates for the levies to be paid, and [NAME] has not paid the levies by the due dates: section 124(1) of the Act.
6. [NAME] has provided records to prove the amount of levies claimed. [NAME] did not dispute the amount claimed.
Is [NAME] liable for interest?
7. 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: section 128 of the Act.
8. [NAME] has resolved to charge interest at 10% per annum on unpaid levies. [NAME] has proved the amount of interest owing from the due dates to 4 June 2025.
Is [NAME] liable for costs?
9. Pursuant to section 124 of the Act [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 in [NAME] 162791 v Cheah DC Auckland, CIV2014-004-0120, 24 June 2014, [NAME] 162791 v Gilbert [2015] NZCA 185, and more recently [NAME] 346799 v Gueirard [2023] NZDC 19645, the Tribunal must order that the reasonable costs incurred by [NAME] in recovering the levies, objectively assessed, be paid by a defaulting unit owner.
10. On the evidence provided by [NAME] I am satisfied that the costs claimed are reasonable.
11. [NAME] has been fully successful in its claim and is therefore entitled to payment of the filing fee: Section 176(1) of the Act and section 102(4) Residential Tenancies Act 1986.
[NAME] 09 June 2025
__________________________________________________________________________________ 9064244 3
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 law.
- Interest can be charged up to 10% per annum on unpaid levies.
- Reasonable costs incurred in collecting unpaid levies can be recovered.
- The filing fee is recoverable if the applicant is fully successful in their claim.
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 $6,758.36, including 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 the claimant's request for recovery of these amounts.
How did the court decide, and why?
The court decided in favour of the claimant, ruling that the respondent must pay all levies and outgoings for the unit as required by the Unit Titles Act 2010.
Which laws or rules were applied?
The Unit Titles Act 2010, sections 80(1)(f), 121(1), 124(1), and 128 were applied, along with the Residential Tenancies Act 1986, section 176(1).
What was the argument that mattered most?
The argument that mattered most was that the respondent was obligated to pay all levies and outgoings for the unit under 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 can seek recovery of unpaid levies, interest, costs, and filing fees if the other party fails to meet their obligations under the Unit Titles Act 2010.
What evidence or documents mattered?
The evidence included records proving the amount of levies claimed and the due dates for payment.
