Tribunal Orders Unit Owner to Pay Levies and Costs
📌 In brief
The Tenancy Tribunal ruled that the unit owner must pay levies, interest, costs, and the filing fee to the applicant. 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.
📖 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 property's 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 charged on 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 costs in a case. However, it can award costs if the case was frivolous or vexatious, if a party had a lawyer, or if the dispute should have been settled by a Tenancy Mediator but a party unreasonably refused.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The 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 applicant. The Tribunal considered the application for recovery of unpaid levies and found the unit owner liable for the total amount claimed, including interest and costs.
📚 Full judgment Official document
__________________________________________________________________________________ 9061664 1
[2025] NZTT 9061664
TENANCY TRIBUNAL AT AUCKLAND | TE TARAIPIUNARA RETIHANGA KI TĀMAKI MAKAURAU
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner, Owner, Owner
UNIT ADDRESS: Unit/[ADDRESS], [POSTCODE]
ORDER
1. [NAME] must pay [NAME] $6,958.01 immediately, calculated as follows:
Descriptions Applicant Respondent
Levy $3,119.70 Costs $3,125.50 Interest $212.81 Filing Fee $500.00 Total payable by Respondent to Applicant
$6,958.01
Reasons:
1. Both parties attended the hearing: [NAME] attended as the unit owner and [NAME] represented the [NAME].
2. The Tribunal must consider an application from the [NAME] for recovery of unpaid levies, interest, costs and the filing fee from the unit owner.
__________________________________________________________________________________ 9061664 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. The [NAME] has determined the levies payable and the unit owner's share has been calculated according to their utility interest. Since the application was filed, levies for April 2025 have become due, and they are included in this order.
5. The [NAME] fixed the due dates for the levies to be paid, and the unit owner had not paid the levies by that date. See section 124(1) Unit Titles Act 2010.
6. [NAME] advised that on 14 April 2025 (yesterday) the unit owner paid a lump sum of $5,400.00. This amount has been deducted from the total claimed.
7. The [NAME] has provided records that 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.
10.The interest sought has been calculated against the unpaid levies up until 14 April 2025.
Is the Unit owner liable for costs?
11.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.
12.[NAME] explained that the costs sought are for work undertaken due to the levies not being paid on time. The [NAME] has maintained contact with the unit owner. Costs for appearance at today’s hearing are included in the amount sought.
__________________________________________________________________________________ 9061664 3
13. I am satisfied that the costs ordered above are reasonable.
14.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] 15 April 2025
__________________________________________________________________________________ 9061664 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 as required by the Unit Titles Act 2010.
- Interest at a rate of up to 10% per annum is chargeable on unpaid levies according to the act.
- Reasonable costs incurred in collecting unpaid levies are recoverable from the unit owner.
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 applicant.
What was the dispute about?
The dispute was about the unit owner's obligation to pay levies and related costs to the applicant.
How did the court decide, and why?
The court decided that the unit owner must pay the levies and related costs because the owner failed to pay the levies by the due date, as required by the Unit Titles Act 2010.
Which laws or rules were applied?
The Unit Titles Act 2010, sections 80(1)(f), 121(1), 124(1), and 128, and the Residential Tenancies Act 1986, section 102(4) were applied.
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 the accrual of interest and costs.
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?
Someone in a similar situation should ensure they pay levies by the due date to avoid accruing interest and costs.
What evidence or documents mattered?
The evidence included records proving the amount claimed and the due dates for the levies.
