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AllowedTenancy Tribunal·

Tribunal Orders Unit Owner to Pay Levies and Costs

Case No.

📌 In brief

The Tenancy Tribunal ruled that a unit owner must pay levies, interest, costs, and the filing fee to the claimant due to non-payment of levies. The decision was based on the Unit Titles Act 2010 and the Residential Tenancies Act 1986.

⚖️ Legal holding

A unit owner is liable for levies, interest, and costs if they fail to pay levies by the due date.

Topics

leviesinterestcosts

Provisions

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 128Residential Tenancies Act 1986, s 54

📖 What the law says

Unit Titles Act 2010 s.121

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 generally calculated based on each unit owner's share of the building's utility or ownership interest.

Unit Titles Act 2010 s.124

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 who owed it at the time or the current unit owner.

Unit Titles Act 2010 s.128

If a unit owner owes money to the body corporate for things like levies, interest will be added to the unpaid amount. The body corporate cannot charge more than 10% interest per year on this unpaid debt.

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 due to non-payment of levies. The Tribunal relied on the Unit Titles Act 2010 and the Residential Tenancies Act 1986 to determine the liability of the unit owner.

📚 Full judgment Official document

__________________________________________________________________________________ 9066244 1

[2025] NZTT 9066244

TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA

APPLICANT: [redacted]

RESPONDENT: [redacted] Owner

UNIT ADDRESS: Unit/Flat [ADDRESS], [POSTCODE]

ORDER

1. [NAME] must pay [NAME] $12,277.28 immediately, calculated as follows:

Descriptions Applicant

Levies (due 28/05/24 & 30/11/24) $7,781.66 Water and Waste (due 05/23 to 05/25) $1,319.29 Interest: on debt $1,014.83 Costs $1,661.50 Filing Fee $500.00

Total payable by Respondent to Applicant

$12,277.28

Reasons:

1. Both parties attended the hearing which took place by teleconference today.

2. [NAME] has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner.

__________________________________________________________________________________ 9066244 2

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. [NAME] seeks payment of levies due on 28 May 2024 and 30 November 2024 totalling $7781.66.

7. [NAME] seeks payment of water and waste outgoings due from May 2023 to May 2025 totalling $1319.29.

8. The unit owner advised that she does not dispute the amounts sought.

Is the Unit owner liable for interest?

9. If a unit owner fails to pay levies or outgoings 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.

10.[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. A statement has been provided.

Is the Unit owner liable for costs?

11.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. I am satisfied that the costs ordered above are reasonable.

12.The amount sought for the hearing fee has been reduced as the hearing was completed within half an hour.

13.[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.

__________________________________________________________________________________ 9066244 3

14.The unit owner explained her recent difficult circumstances. [NAME] advised that [NAME] was open to discussing a payment plan and the parties agreed to speak after the hearing to seek to make arrangements regarding this.

[NAME] 28 May 2025

__________________________________________________________________________________ 9066244 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 for the unit.
  • The levies payable and the unit owner's share were calculated according to their utility interest.
  • The unit owner did not dispute the amounts sought for levies, water, and waste.
  • Interest accrues on unpaid balances if a unit owner fails to pay levies by the due date.
  • The applicant is entitled to recover reasonable costs incurred in collecting unpaid levies.

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 the non-payment of levies by the unit owner.

How did the court decide, and why?

The court decided that the unit owner must pay the levies, interest, costs, and the filing fee because the unit owner failed to pay the levies by the due date.

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 Residential Tenancies Act 1986, s 54

What was the argument that mattered most?

The argument that mattered most was that the unit owner had failed to pay the levies by the due date, leading to interest and costs being charged.

Was the decision for or against the person who brought the case?

The decision was for the person who brought the case.

What does this mean for someone in a similar situation?

For someone in a similar situation, failing to pay levies by the due date can lead to additional charges including interest and costs.

What evidence or documents mattered?

The evidence included records proving the amount of levies claimed and the due dates for payment.

Official source: Tenancy Tribunal headnote and full judgment reproduced from the court's public records. View on the official source ↗Summary, holding, technical summary and questions: produced by Artificial Intelligence based on the official headnote and judgment. These are VadeLab’s own material and are not the work of the Court.This decision was issued by the Tenancy Tribunal and is reproduced from its published records. VadeLab is not affiliated with, and this page is not endorsed by, that court or tribunal.
Tribunal Orders Unit Owner to Pay Levies and Costs | VadeLab