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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 a filing fee to the claimant. The decision was based on the Unit Titles Act 2010, which requires unit owners to pay all levies and outgoings payable for the unit, including interest and reasonable costs incurred in collecting these.

⚖️ Legal holding

A unit owner must pay all levies and outgoings payable for the unit, including interest and reasonable costs incurred in collecting these.

Topics

leviescosts recoveryinterest calculation

Provisions

Unit Titles Act 2010, ss 80(1)(f), 121(1), 124(1), 128Residential Tenancies Act 1986, s 102(4)

📖 What the law says

Unit Titles Act 2010 s.80

This section outlines some responsibilities of owners of principal units, including allowing the body corporate or its agents to enter the unit for specific purposes like viewing its condition or maintaining shared infrastructure.

Residential Tenancies Act 1986 s.102

Generally, the Tenancy Tribunal cannot order one party to pay the other's costs in a case. However, it can do so in certain situations, such as when the proceedings are considered frivolous or vexatious, or if a party was represented by a lawyer.

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 a filing fee.

📜 Headnote Official document

The Tenancy Tribunal ordered the unit owner to pay levies, interest, costs, and a 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 reasonable costs incurred in collecting these, as per the Unit Titles Act 2010.

📚 Full judgment Official document

__________________________________________________________________________________ 9061004 1

[2025] NZTT 9061004

TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA

APPLICANT: [redacted]

RESPONDENT: [redacted] Owner

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

ORDER

1. [COMPANY] must pay [NAME] $23,836.50 immediately, calculated as follows:

Descriptions Applicant Respondent

Ordinary Levy: due 30 September 2023 $8,463.00 Ordinary Levy: due 11 October 2024 $9,188.00 Costs: [NAME] debt collection fees $1,090.20 Costs: Legal $4,440.05 Costs: Legal - appearance at hearing $155.25 Filing Fee $500.00 Total award with interest $23,836.50 Total payable by Respondent to Applicant

$23,836.50

__________________________________________________________________________________ 9061004 2

Reasons:

1. [NAME], who works for [NAME], represented the [NAME] and attended the hearing.

2. The unit owner did not attend the hearing, which was held by phone. I am satisfied the unit owner was properly served and notified about the hearing.

3. 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?

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. The [NAME] has determined the levies payable and unit owner's share has been calculated according to their utility interest.

6. 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.

7. 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 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.

11.There is a debt collection charge from [NAME], which is the management company used by the [NAME]. The [NAME] has instructed lawyers to collect

__________________________________________________________________________________ 9061004 3

the debt, file the application with the Tenancy Tribunal, and attend the hearing. I am satisfied that the costs ordered above are reasonable.

12.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.

[NAME] 24 March 2025

__________________________________________________________________________________ 9061004 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 did not attend the hearing, but was properly notified about it.
  • The applicant proved the amount of unpaid levies by providing records.
  • The applicant proved the amount of interest owing from the due date to the hearing date.
  • The costs incurred by the applicant for debt collection and legal fees were considered reasonable.
  • The applicant succeeded with the claim, so the filing fee was reimbursed.

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 a filing fee to the claimant.

What was the dispute about?

The dispute was about whether the unit owner owed levies, interest, costs, and a filing fee 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 reasonable costs incurred in collecting these, as per the Unit Titles Act 2010.

Which laws or rules were applied?

Unit Titles Act 2010, ss 80(1)(f), 121(1), 124(1), 128 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 reasonable costs incurred in collecting these.

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, they should ensure they pay all levies and outgoings payable for the unit, including interest and reasonable costs incurred in collecting these.

What evidence or documents mattered?

The evidence and documents that mattered included records proving the amount claimed and the resolution of the body managing the unit to charge interest at 10% per annum on unpaid levies.

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