Unit Owner Ordered to Pay Levies and Associated Costs
📌 In brief
The Tenancy Tribunal ordered the unit owner to pay levies, interest, costs, and the filing fee for unpaid levies. The decision was based on the unit owner’s obligation to pay levies under the Unit Titles Act 2010 and the associated costs under the Residential Tenancies Act 1986.
⚖️ Legal holding
A unit owner must pay levies, interest, and costs associated with unpaid levies.
📖 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 calculated based on each unit owner's share of the property or their 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 unit owner who owed it at the time or the current unit owner.
If a unit owner owes money to the body corporate for certain reasons, interest will be added to the unpaid amount. This interest rate cannot be more than 10% per year.
When the Tenancy Tribunal hears and decides a unit title dispute, it generally follows the rules for hearings and decisions found in Part 3 of the Residential Tenancies Act 1986. However, some specific sections of that Act, like those about the Tribunal's jurisdiction or enforcing possession orders, do not apply.
Generally, the Tribunal cannot order one party to pay the costs of another party in proceedings. However, it can make such an order if the case was frivolous or vexatious, if a party had a lawyer, or if the dispute should have been settled earlier but a party unreasonably refused.
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.
📜 Headnote Official document
The Tenancy Tribunal ordered the unit owner to pay levies, interest, costs, and the filing fee for unpaid levies. The Tribunal considered the unit owner’s obligation to pay levies under the Unit Titles Act 2010 and the associated costs under the Residential Tenancies Act 1986.
📚 Full judgment Official document
__________________________________________________________________________________ 9057144 1
[2025] NZTT Video Location 9057144
TENANCY TRIBUNAL AT Video Location
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner
UNIT ADDRESS: Unit/Flat [ADDRESS], [POSTCODE]
ORDER
1. [NAME] must pay [NAME] $14,645.40 immediately, calculated as follows:
Descriptions
Levy 1/7/23 - 30/6/25 $8,459.69 Costs: debt collection charges $632.50 Costs: debt collection handover $287.50 Costs: legal reasonable incurred $4,136.86 Costs: hearing attendance (1/2 hour incl. GST)
$155.25
Filing Fee $500.00 Total award $14,171.80 Total interest $473.60 Total award with interest $14,645.40 Total payable by Respondent to Applicant
$14,645.40
__________________________________________________________________________________ 9057144 2
Reasons:
1. The applicant only attended the hearing. [NAME] represented the [NAME].
2. The respondent did not attend the hearing. He had been notified of the hearing by email and sent the link for attendance, accordingly pursuant to section 92 of the Residential Tenancies Act 19861 the hearing continued in his absence.
3. The [NAME] has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner.
4. The Tribunal must consider an application from the [NAME] for unpaid levies and associated collection costs and interest.
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.
6. The [NAME] has determined the levies payable and 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) Unit Titles Act 2010.
8. The [NAME] has provided records to prove the amount claimed; accordingly, the order is made as sought.
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].
1 As empowered by section 171 of the Unit Titles Act 2010
__________________________________________________________________________________ 9057144 3
12. 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.
13.The documents provided by the [NAME] and the invoices issued by the solicitors acting for the [NAME] set out the work completed, and the time spent in attempting to recover the unpaid levies. All costs incurred were identified to the respondent prior to incursion.
14. I am satisfied that the debt collection costs claimed by the [NAME] are reasonable and substantiated in evidence.
15.The legal costs were only incurred following letters of demand and follow-ups first by the [NAME] and then by the Solicitors acting. The respondent has therefore had every opportunity to pay. These costs were all avoidable.
16.Accordingly, I find that the actual solicitor and client costs are, in the circumstances of this case, reasonable costs incurred in collecting the levies and can therefore be recovered from the unit owner. Half an hour of time was awarded for [NAME]’s attendance at the hearing.
17.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] 21 February 2025
__________________________________________________________________________________ 9057144 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 per the Unit Titles Act 2010.
- Interest can be charged up to 10% per annum on unpaid levies.
- Reasonable costs incurred in collecting unpaid levies can be recovered from the unit owner.
- Legal costs incurred after sending letters of demand are considered reasonable and avoidable.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The unit owner was ordered to pay levies, interest, and collection costs.
What was the dispute about?
The claimant sought recovery of unpaid levies from the unit owner.
How did the court decide, and why?
The Tribunal ruled in favor of the claimant based on evidence provided and applicable law under the Unit Titles Act 2010.
Which laws or rules were applied?
Sections 80(1)(f) and 124(1) of the Unit Titles Act 2010 were cited.
What was the argument that mattered most?
The claimant successfully argued that unpaid levies, interest, and collection costs are recoverable under the Unit Titles Act 2010.
Was the decision for or against the person who brought the case?
The decision was in favor of the claimant.
What does this mean for someone in a similar situation?
A unit owner may be liable to pay levies, interest, and collection costs if they fail to meet payment deadlines set by the Unit Titles Act 2010.
What evidence or documents mattered?
The claimant provided records and invoices proving the amount claimed.