Tenant Ordered to Pay Levies and Costs in Tenancy Tribunal Case
📌 In brief
The Tenancy Tribunal ruled that the unit owner must pay levies, interest, costs, and the filing fee to the claimant. 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, including interest and costs.
📖 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 usually calculated based on each unit owner's share of the utility 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 person who owned the unit when 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.
When the Tenancy Tribunal hears and decides a unit title dispute, it generally follows the rules for hearings and decisions found in Part 3 of the Residential Tenancies Act 1986. However, some specific sections of that Act, like those about the Tribunal's jurisdiction or enforcing possession orders, do not apply.
Generally, the Tenancy Tribunal cannot order one party to pay the costs of another party in proceedings. However, it can award costs in specific situations, such as when the proceedings are considered frivolous, a party was represented by a lawyer, or a party unreasonably refused to settle the dispute through mediation.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tenancy Tribunal ordered the unit owner to pay levies, interest, costs, and the filing fee.
📜 Headnote Official document
The Tenancy Tribunal ordered the unit owner to pay levies, interest, costs, and the filing fee to the claimant. The Tribunal found that the unit owner must pay all levies and outgoings payable for the unit, including interest and costs, as per the Unit Titles Act 2010.
📚 Full judgment Official document
__________________________________________________________________________________ 9060904 1
[2025] NZTT Remote Location 9060904
TENANCY TRIBUNAL AT Remote Location
APPLICANT: [redacted]
RESPONDENTS: [redacted]
ORDER
1. [NAME] must pay [NAME] $49,789.36 immediately, calculated as follows:
Descriptions Applicant Respondent
Levies $46,893.65 Interest $387.25 Legal costs (incl hearing 0.5 hr) $1,942.05 [NAME] (hearing 0.33hr) $66.41 Filing Fee $500.00 Total award $49,789.36 Total payable by Respondent to Applicant $49,789.36
__________________________________________________________________________________ 9060904 2
Reasons:
1. Both parties attended the hearing, conducted via video conference. [NAME] represented the applicant. [NAME] appeared for both owners. [NAME] sent his apologies.
2. The [NAME] has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner.
3. The applicant had provided an updated table of costs. The table included the cost of its preparation as well as time in preparation for this hearing. The table of costs and total were not disputed by the respondent. Given that, [NAME] left the hearing before it ended as she was present in case of any dispute as to the fees or calculations.
4. The respondent explained the circumstances leading to this debt and subsequent application. She advised a prior commitment to the [NAME] to pay the debt in full by 31 March 2025 had been made via email.
Does the Unit Owner owe the levies claimed?
5. 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.
6. The [NAME] has determined the levies payable and unit owner's share has been calculated according to their utility interest.
7. The [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. The [NAME] has provided records to prove the amount claimed.
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. The [NAME] has resolved to charge interest at 10% per annum on unpaid levies. The [NAME] has proved the amount of interest owing from the due date to the hearing date.
Is the Unit owner liable for costs?
10.Pursuant to section 124 UTA, and as resolved at meetings of the [NAME], the [NAME] is entitled to recover any reasonable costs incurred by it in collecting unpaid levies as a debt due by the owner to the [NAME]. In accordance with the judgments (of the District Court and Court of Appeal
__________________________________________________________________________________ 9060904 3
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 the [NAME] in recovering the levies, objectively assessed, be paid by a defaulting unit owner. I am satisfied that the costs ordered above are as accounted for in the applicant submission regarding costs and are reasonable.
11.For the appearance time at the hearing, I have allowed 30 minutes for the legal representation at $195/hr ex-GST and 20 minutes for the [NAME] at $175/hr ex-GST. These amounts of $112.13 and $66.41 are awarded.
12.Because the [NAME] has succeeded with the claim I have reimbursed the filing fee of $500.00. Section 176(1) Unit Titles Act 2010 and section 102(4) Residential Tenancies Act 1986.
[NAME] 12 February 2025
__________________________________________________________________________________ 9060904 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 payable for the unit as per the Unit Titles Act 2010.
- Interest at a rate of up to 10% per annum accrues on unpaid levies if not paid by the due date.
- Reasonable costs incurred in collecting unpaid levies are recoverable from the defaulting unit owner.
❌ Tends to be rejected
- The respondent's explanation for non-payment and prior commitment to pay did not prevent the levy, interest, and cost recovery.
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 levies, interest, costs, and the filing fee to the claimant.
What was the dispute about?
The dispute was about unpaid levies and the associated interest and costs that the unit owner owed to the claimant.
How did the court decide, and why?
The court decided that the unit owner must pay all levies and outgoings payable for the unit, including interest and costs, as per the Unit Titles Act 2010.
Which laws or rules were applied?
Unit Titles Act 2010, s 80(1)(f) Unit Titles Act 2010, s 121(1) Unit Titles Act 2010, s 124(1) Unit Titles Act 2010, s 128 Unit Titles Act 2010, s 176(1) Residential Tenancies Act 1986, s 102(4)
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, as per 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?
For someone in a similar situation, they should ensure they pay all levies and outgoings payable for their unit, including interest and costs, to avoid facing similar legal action.
What evidence or documents mattered?
The evidence and documents that mattered included the records proving the amount of levies claimed and the calculation of interest and costs.