Successful Recovery of Unpaid Levies and Costs in Tenancy Tribunal Case
📌 In brief
The Tenancy Tribunal ruled in favour of the claimant, ordering the unit owner to pay $10,401.80, which includes unpaid levies, interest, costs, and the filing fee, as required by the Unit Titles Act 2010.
⚖️ Legal holding
A unit owner must pay all levies and outgoings payable for the unit as determined by the Unit Titles Act 2010.
📖 What the law says
A body corporate can decide how much money is needed for various funds and then charge unit owners levies to create and maintain these funds. These levies are typically calculated based on each unit owner's share of the utility interest or ownership interest.
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 current unit owner.
If a unit owner owes money to the body corporate for certain reasons, interest will be added to the unpaid amount. This interest rate 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 ruled that the unit owner must pay the claimant $10,401.80, including unpaid levies, interest, costs, and the filing fee, as determined by the Unit Titles Act 2010.
📚 Full judgment Official document
__________________________________________________________________________________ 9063224 1
[2025] NZTT 9063224
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner
UNIT ADDRESS: Unit/[ADDRESS], [POSTCODE]
ORDER
1. [NAME] must pay [NAME] $10,401.80 immediately, calculated as follows:
Descriptions Applicant
Outstanding Levies $6,166.64 Costs: Debt Collection $690.00 Costs: Legal Fees $2,583.13 Filing Fee $500.00 Total award $9,939.77 Total interest $462.03 Total payable by Respondent to Applicant
$10,401.80
Reasons:
1. [NAME] attended the hearing, represented by Counsel.
2. The unit owner did not attend the hearing. I am satisfied that the owner was sent the video link to attend the hearing and has been served with the application. It was appropriate to proceed with the hearing.
__________________________________________________________________________________ 9063224 2
3. [NAME] has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner. Counsel provide clear and concise written submissions and evidence before the hearing.
Does the Unit Owner owe the levies claimed?
4. 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.
5. [NAME] has determined the levies payable and unit owner's share has been calculated according to their utility interest.
6. [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.
7. The outstanding levies awarded include ordinary levies (45,096.20) for 2024 and 2025, up to 30 April 2025 and a special levy of $1,070.44 for insurance which was due on 13 December 2023.
Is the Unit owner liable for interest?
8. 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.
9. [NAME] has resolved to charge interest at 10% per annum on unpaid levies. Interest of 10% from the due date of each invoice to the hearing date has been awarded above.
Is the Unit owner liable for costs?
10.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] v [NAME] DC Auckland, 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. I am satisfied that the costs ordered above are reasonable.
__________________________________________________________________________________ 9063224 3
11.[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] 28 April 2025
__________________________________________________________________________________ 9063224 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 was properly informed about the hearing and the application, so it was right to proceed.
- The applicant provided clear written submissions and evidence before the hearing.
- The levies payable were determined and calculated according to the unit owner's utility interest.
- The unit owner did not pay the levies by the fixed due date.
- The applicant provided records to prove the amount of outstanding levies claimed.
- The applicant had resolved to charge interest at 10% per annum on unpaid levies.
- The costs incurred by the applicant in collecting unpaid levies were deemed reasonable.
- The applicant succeeded with the claim, entitling them to reimbursement of the filing fee.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal decided that the unit owner must pay the claimant $10,401.80, including unpaid levies, interest, costs, and the filing fee.
What was the dispute about?
The dispute was about the unit owner's refusal to pay the levies, interest, costs, and the filing fee 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 clear evidence 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 as determined by 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 the filing fee from the unit owner through the Tenancy Tribunal.
What evidence or documents mattered?
The evidence and documents that mattered included records proving the amount claimed and the due dates for the levies.