Tribunal Orders Unit Owner to Pay Levies and Costs
📌 In brief
The Tenancy Tribunal ordered the unit owner to pay levies, water charges, interest, and costs to the claimant. This 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 as determined by the body corporate.
📖 What the law says
A body corporate can decide how much money is needed for its various funds and then charge unit owners levies to collect that money. These levies are calculated based on each unit owner's share of the development.
The 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 unit owner who owed it.
If a body corporate installs a meter to track the use of a service or amenity by a unit, it can charge the unit owner for that usage. This charge is treated the same way as a levy for recovery purposes, and the cost must match what the service provider charges.
If a unit owner owes money to the body corporate for things like levies or metered charges, interest will be added to the unpaid amount. This interest cannot be more than 10% per year.
When the Tenancy Tribunal hears and decides a unit title dispute, it must follow most of the rules from Part 3 of the Residential Tenancies Act 1986, with necessary changes. However, certain sections of that Act, like those about the Tribunal's jurisdiction or enforcing possession orders, do not apply.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tenancy Tribunal ordered the unit owner to pay levies, water charges, interest, and costs to the claimant.
📜 Headnote Official document
The Tenancy Tribunal ordered the unit owner to pay levies, water charges, interest, and costs to the claimant. The decision was based on the Unit Titles Act 2010 and the Residential Tenancies Act 1986.
📚 Full judgment Official document
__________________________________________________________________________________ 9057324 1
[2025] NZTT 9057324
TENANCY TRIBUNAL AT WELLINGTON | TE TARAIPIUNARA RETIHANGA KI TE WHANGANUI-A-TARA
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner
UNIT ADDRESS: Unit/Flat Unit 7E, 38-[ADDRESS], [POSTCODE], Stafford House
ORDER
1. [NAME] must pay [NAME] $78,017.75 immediately, calculated as follows:
Descriptions Applicant Respondent
Ordinary Levies $28,649.67 Remedial Levies $28,557.00 Water charges $1,114.99 Interest: on unpaid levies and water charges
$10,637.66
[NAME] Manager debt collection charges
$948.00
Legal costs $7,299.93 Legal costs for appearance at hearing $310.50 Filing Fee $500.00
Total award $78,017.75 Total payable by Respondent to Applicant
$78,017.75
__________________________________________________________________________________ 9057324 2
Reasons:
1. The applicant attended the hearing by telephone represented by its agent Ms McGregor from [NAME].
2. There was no appearance by the unit owner in person and nor did he provide a telephone contact number should he wish to attend by teleconference, which was offered to him as an option.
3. I am satisfied that the unit owner received notice of the hearing and chose not to attend.
4. The [NAME] has applied for recovery of unpaid levies, water charges interest, costs and the filing fee from the unit owner.
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 (UTA).
6. The [NAME] has determined the levies and water charges payable and the 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) UTA. The [NAME] has provided records to prove the amounts claimed.
8. The [NAME] has invoiced the unit owner for the water charges as shown in records produced in evidence and the unit owner has not paid the charges by the due date. Therefore, the water charges are recoverable from the owner as if they were a levy. See section 125 UTA.
Is the Unit owner liable for interest?
9. 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.
10.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?
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) in Body
__________________________________________________________________________________ 9057324 3
Corporate 162791 v Cheah DC Auckland, CIV2014-004-0120, 24 June 2014, [NAME] 45131 v 88 Chi Limited [2023] NZDC 9036 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 reasonable. The applicant also drew attention to the District Court case [NAME] 346799 v Gueirard & Vu [2023] NZDC 19645
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] 27 February 2025
__________________________________________________________________________________ 9057324 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 determined by the body corporate.
- Interest can be charged up to 10% per annum on unpaid levies.
- Reasonable costs incurred by the body corporate in collecting unpaid levies can be recovered from the unit owner.
- The filing fee is reimbursed if the body corporate succeeds with the claim.
❌ Tends to be rejected
- The unit owner's non-attendance at the hearing did not affect the decision.
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, water charges, interest, and costs to the claimant.
What was the dispute about?
The dispute was about whether the unit owner owed levies, water charges, interest, and costs to the claimant.
How did the court decide, and why?
The court decided that the unit owner must pay levies, water charges, interest, and costs because these were determined by the body corporate and the unit owner had failed to pay them.
Which laws or rules were applied?
The Unit Titles Act 2010 and the Residential Tenancies Act 1986 were applied.
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 as determined by the body corporate.
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 all levies and outgoings payable for their unit as determined by the body corporate.
What evidence or documents mattered?
The evidence included records proving the amounts claimed, including levies, water charges, interest, and costs.