Tenant Ordered to Pay Levies, Interest, and Costs
📌 In brief
The Tenancy Tribunal ruled that a unit owner must pay levies, interest, costs, and the filing fee to the claimant. The decision was based on the Unit Titles Act 2010 and the Residential Tenancies Act 1986.
⚖️ 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 calculated based on each unit owner's share of the property.
A body corporate must set a due date for levy payments. If a levy is not paid, the unpaid amount, plus any reasonable collection costs, 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.
Generally, the Tenancy Tribunal cannot order one party to pay the other party's legal costs. However, it can award costs if the case was trivial or unnecessary, if a lawyer represented a party, or if 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 to the claimant.
📜 Headnote Official document
The Tenancy Tribunal ordered the unit owner to pay levies, interest, costs, and the filing fee to the claimant, finding 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 and the Residential Tenancies Act 1986.
📚 Full judgment Official document
__________________________________________________________________________________ 9060984 1
[2025] NZTT 9060984
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner
UNIT ADDRESS: Unit/[ADDRESS], [POSTCODE]
ORDER
1. [COMPANY] must pay [NAME] $16,939.99, calculated as follows:
Descriptions Applicant
Levies (due 30/09/2023-31/01/2025 less part payments made)
$14,139.51
Costs $1,827.75 Interest $472.73 Filing Fee $500.00
Total payable by Respondent to Applicant
$16,939.99
2. [COMPANY] must pay the debt in order 1 at the rate of $2000.00 per month.
3. The first payment must be made on 7 March 2025 and payments must continue every month on the 7th day of the month until the debt is paid in full.
4. If the respondent fails to make any payment within 2 working days of the due date, the balance of the debt owing will be payable immediately and can be enforced through the District Court.
__________________________________________________________________________________ 9060984 2
Reasons:
1. Both parties attended the hearing which took place by video conference.
2. The [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. The [NAME] has determined the levies payable and unit owner's share has been calculated according to their utility interest.
5. 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.
6. The unit owner does not dispute the levies claimed, he explained the difficulties in September 2023 which led to the arrears and has been making regular instalment payments. The unit owner queried whether a payment made by him on 5 February 2025 was included and I am satisfied that it is included in the [NAME] dated 7 February 2025 which is provided in evidence.
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. 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?
9. 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 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
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recovering the levies, objectively assessed, be paid by a defaulting unit owner. I am satisfied that the costs ordered above are reasonable.
10.Because the [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.
Instalment payment of debt
11.The respondent owner does not dispute the debt claimed but seeks to repay the debt at a rate of $2000.00 per month payable on the 7th of each month with the first payment due on 7 March 2025. He has indicated this is a minimum amount and more will be paid if possible.
12.The applicant opposes instalment payments and seeks the full amount immediately.
13.The Tribunal may make any order subject to such conditions (whether as to the time for, or mode of, compliance, or otherwise) as the Tribunal thinks fit to impose. See section 176 Unit Titles Act 2010 and section 78(3) Residential Tenancies Act 1986.
14. I am satisfied that the respondent has demonstrated regular payments towards the debt and the amount of levies ordered today is less than the amount in the original claim filed. Therefore, I make the order for instalment payments as sought. The instalment payments for the debt are in addition to any future levy payments due.
[NAME] 27 February 2025
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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 for the unit as required by law.
- Interest accrues on unpaid levies at a rate of 10% per annum when due dates are missed.
- Reasonable costs incurred in collecting unpaid levies can be recovered from the unit owner.
- Regular instalment payments towards the debt were accepted, with the first payment due on 7 March 2025.
❌ Tends to be rejected
- The applicant's request for immediate full payment of the debt was not granted.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The tribunal ordered the unit owner to pay levies, interest, costs and filing fee for unpaid charges.
What was the dispute about?
The case concerned unpaid levies owed by a property owner to their unit management group.
How did the court decide, and why?
The tribunal ruled in favor of the claimant based on evidence that the unit owner had not paid required charges as per the Unit Titles Act 2010.
Which laws or rules were applied?
Sections 80(1)(f) and 124(1) of the Unit Titles Act 2010 were cited in the decision.
What was the argument that mattered most?
The claimant argued successfully that levies are due according to the unit management rules and that interest applies for late payments under the law.
Was the decision for or against the person who brought the case?
The decision was in favor of the person who brought the case, as they were awarded all requested amounts.
What does this mean for someone in a similar situation?
If you are a unit owner with unpaid levies, you may be required to pay these charges along with interest and costs if legal action is taken.
What evidence or documents mattered?
The judgment mentions records provided by the claimant proving the amount of levies claimed.