Successful Recovery of Unpaid Levies and Costs at Tenancy Tribunal
📌 In brief
The Tenancy Tribunal ruled in favour of the claimant, ordering the unit owner to pay $3,514.39, which includes unpaid levies, interest, and costs, under the Unit Titles Act 2010.
⚖️ Legal holding
A unit owner must pay all levies and outgoings payable for the unit, including interest and costs.
📖 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 utility or ownership interest.
This rule states that 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 owner when legal action begins.
This rule explains that if a unit owner owes money to the body corporate under certain sections, interest will be added to the unpaid amount. The interest 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 ordered the unit owner to pay the claimant $3,514.39, which included unpaid levies, interest, and costs, following the Unit Titles Act 2010.
📚 Full judgment Official document
__________________________________________________________________________________ 9061264 1
[2025] NZTT 9061264
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
RESPONDENTS: [redacted] Owner
UNIT ADDRESS: Unit/Flat Unit 6J, 12-[ADDRESS], [POSTCODE]
ORDER
1. [NAME] must pay [NAME] $3,514.39 immediately, calculated as follows:
Descriptions Applicant Respondent
Ordinary Levy $110.49 Costs: s 124 costs $3,100.88 Interest $65.83 Costs: Appearance at hearing (0.75 hours)
$237.19
Total payable by Respondent to Applicant
$3,514.39
__________________________________________________________________________________ 9061264 2
Reasons:
1. [NAME] attended the hearing, set down to be conducted via video, with [NAME] of [NAME] representing. There was no entry into the video conference by the owner and a subsequent call to their number was made. This was not answered and went to voicemail. A second attempt had the same outcome. I was satisfied adequate service had completed and I continued with the hearing.
2. [NAME] has applied for recovery of unpaid levies, interest, and costs 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.
6. Since the application was lodged and before the date of the hearing the unit owners had made further payments to [NAME], reducing the total monetary order sought.
Is the Unit owner 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. See section 128 Unit Titles Act 2010.
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 date to the hearing date.
Is the Unit owner liable for costs?
9. 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.
__________________________________________________________________________________ 9061264 3
10. I requested further evidence be provided after the hearing, specifically written evidence of the Levy collection policy and [NAME] communication, with dates, between it and the owner regarding the unpaid levy, prior to the engagement of legal counsel on or around 18 October 2024.
11.This evidence has now been provided. I am satisfied that the costs ordered above are reasonable. The owners were appropriately served with the debt notices, as per the levy collection policy and timetabling.
[NAME] 08 April 2025
__________________________________________________________________________________ 9061264 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
- The unit owner must pay all levies and outgoings as per the Unit Titles Act 2010.
- Interest can be charged up to 10% per annum on unpaid levies.
- Reasonable costs incurred by the applicant in collecting unpaid levies can be recovered from the unit owner.
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 $3,514.39, which includes unpaid levies, interest, and costs.
What was the dispute about?
The dispute was about the unit owner's failure to pay levies, interest, and costs 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 provided proof of the amounts owed.
Which laws or rules were applied?
The Unit Titles Act 2010, 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 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 from a unit owner under the Unit Titles Act 2010.
What evidence or documents mattered?
The judgment mentions records proving the amount claimed and the levy collection policy and communication between the claimant and the owner.