Tribunal Orders Unit Owner to Pay Levies and Costs
📌 In brief
The Tenancy Tribunal ruled that the Unit Owner must pay levies, interest, and costs to the claimant for failing to meet the payment deadlines. This decision was based on the Unit Titles Act 2010.
⚖️ Legal holding
A Unit Owner must pay levies, interest, and costs if they fail to pay levies by the due date.
📖 What the law says
A body corporate can decide how much money is needed for various 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, along with any reasonable costs to collect it, can be recovered as a debt from the unit owner.
If a unit owner owes money to the body corporate for things like levies, interest will be added to the unpaid amount. This interest cannot be more than 10% per year.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tribunal ordered the Unit Owner to pay levies, interest, and costs to the claimant.
📜 Headnote Official document
The Tenancy Tribunal ordered the Unit Owner to pay levies, interest, and costs to the claimant for failing to pay levies by the due date. The Tribunal relied on the Unit Titles Act 2010 to justify its decision.
📚 Full judgment Official document
__________________________________________________________________________________ 9061484 1
[2025] NZTT Remote Location 9061484
TENANCY TRIBUNAL AT Remote Location
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner
UNIT ADDRESS: Unit/Flat E, [ADDRESS], [POSTCODE]
ORDER
1. [NAME] must pay [NAME] $8,274.40 immediately, calculated as follows:
Descriptions Applicant Respondent
Unpaid legal fees $1,864.66 Interest on legal fees $288.35 Unpaid BBCL fees $678.50 Interest BBCL fees $78.35 Levy $1,657.58 Interest on levies $53.58 Debt recovery $2,489.00 Preparation for hearing and attendance $1,164.38
Total award $8,274.40 Total payable by Respondent to Applicant
$8,274.40
__________________________________________________________________________________ 9061484 2
Reasons:
1. [NAME] attended the hearing for the applicant which was held by teleconference on 4 February 2025. The Tribunal was unable to contact the respondent on the contact number provided in the application. I was satisfied that adequate service of the hearing notice was completed and deemed it reasonable to proceed with the hearing in the respondent’s absence.
2. [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. [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.
Is the Unit Owner liable for interest?
6. 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.
7. [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.
Is the Unit Owner liable for costs?
8. 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.
9. I am satisfied that the costs ordered above are reasonable.
__________________________________________________________________________________ 9061484 3
10.As [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 February 2025
__________________________________________________________________________________ 9061484 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 applicant proved the Unit Owner had not paid the levies by the due date.
- The applicant provided records to prove the amount of levies claimed.
- The applicant proved the amount of interest owing from the due date to the hearing date.
- The Tribunal was satisfied that the costs ordered for recovery of unpaid levies were 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 Tribunal ordered the Unit Owner to pay levies, interest, and costs to the claimant.
What was the dispute about?
The dispute was about whether the Unit Owner owed levies, interest, and costs to the claimant.
How did the court decide, and why?
The court decided that the Unit Owner must pay levies, interest, and costs because they failed to pay the levies by the due date.
Which laws or rules were applied?
The Unit Titles Act 2010 was applied, specifically sections 80(1)(f), 121(1), 124(1), and 128.
What was the argument that mattered most?
The argument that mattered most was that the Unit Owner had failed to pay levies by the due date, thus accruing 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 judgment mentions records proving the amount claimed and the due dates for payments.