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AllowedTenancy Tribunal·

Unit Owner Ordered to Pay Levies and Costs

Case No.

📌 In brief

The Tenancy Tribunal ruled that the unit owner must pay levies, interest, costs, and filing fees to the manager. This decision was made under 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 manager.

Topics

unpaid leviesinterest on leviescost recovery

Provisions

Unit Titles Act 2010, s 80(1)(f)Unit Titles Act 2010, s 121(1)Unit Titles Act 2010, s 124(1)Unit Titles Act 2010, s 128Unit Titles Act 2010, s 176(1)Residential Tenancies Act 1986, s 102(4)

📖 What the law says

Unit Titles Act 2010 s.121

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 utility interest for operating, long-term maintenance, and contingency funds, and ownership interest for capital improvement funds.

Unit Titles Act 2010 s.124

A body corporate must set a due date for levy payments. If a levy is not paid, the unpaid amount, plus 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 person who owns it when legal action begins.

Unit Titles Act 2010 s.128

If a unit owner owes money to the body corporate under certain sections of the Act, interest will be charged on the unpaid amount. This interest rate cannot be more than 10% per year.

Unit Titles Act 2010 s.176

When the Tenancy Tribunal hears and decides a unit title dispute, most of Part 3 of the Residential Tenancies Act 1986 applies, with necessary changes. However, certain sections of that Act, like those about the Tribunal's jurisdiction or enforcing possession orders, do not apply.

Residential Tenancies Act 1986 s.102

Generally, the Tenancy Tribunal cannot order one party to pay the other's legal costs. However, it can award costs if the proceedings were frivolous or vexatious, if a party had a lawyer, or if the dispute should have been settled by a Tenancy Mediator but a party refused without good reason.

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 filing fees to the manager.

📜 Headnote Official document

The Tenancy Tribunal ordered the unit owner to pay levies, interest, costs, and filing fees to the manager. The decision was based on the Unit Titles Act 2010 and the Residential Tenancies Act 1986.

📚 Full judgment Official document

__________________________________________________________________________________ 9064164 1

[2025] NZTT 9064164

TENANCY TRIBUNAL AT AUCKLAND | TE TARAIPIUNARA RETIHANGA KI TĀMAKI MAKAURAU

APPLICANT: [redacted]

RESPONDENT: [redacted] Owner

UNIT ADDRESS: Room 218, Unit/[ADDRESS], [POSTCODE]

ORDER

1. [NAME] must pay [NAME] $9,857.75 immediately, calculated as follows:

Descriptions Applicant

Levies due 10/12/24 and 10/02/25 $5,713.41 Costs $3,462.50 Filing Fee $500.00 Total award $9,675.91 Total interest on levies $181.84 Total award with interest $9,857.75 Total payable by Respondent to Applicant

$9,857.75

Reasons:

1. Both parties attended the hearing. [NAME] was represented by [NAME] and [NAME] appeared in person.

__________________________________________________________________________________ 9064164 2

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.

6. [NAME] advised that there was a part payment of the annual levy due on 10 December 2024 and the balance of $1582.30 is outstanding. The annual levy instalment of $4131.11 due on 10 February 2025 has not been paid. The total outstanding levies claimed is $5713.41.

Is the Unit owner liable for interest?

7. 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.

8. [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?

9. 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 Cheah 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. [NAME] reduced the appearance fee for today as the hearing did not take the full time allocated. I am satisfied that the costs ordered above are reasonable.

10.[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.

11.[NAME] attended today and accepts the amounts due and has explained that due to financial difficulty she has been unable to make the payments.

__________________________________________________________________________________ 9064164 3

12.[NAME] advised that [NAME] is open to discuss a payment plan and [NAME] stated that she will make contact with [NAME] to discuss this.

[NAME] 21 May 2025

__________________________________________________________________________________ 9064164 4

Please read carefully:

SHOULD YOU REQUIRE ANY HELP OR INFORMATION REGARDING THIS MATTER PLEASE CONTACT UNIT TITLE SERVICES [PHONE].

MEHEMA HE PĀTAI TĀU E PĀ ANA KI TENEI TAKE, PĀTAI ATU KI TE TARI UNIT TITLE SERVICES [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 UNIT TITLE SERVICES [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 for the unit as required by law.
  • The manager determined the levies and calculated the unit owner's share based on their utility interest.
  • The unit owner did not pay the levies by the due date set by the manager.
  • Interest accrues on unpaid levies when a unit owner fails to pay by the due date.
  • The manager resolved to charge interest at 10% per annum on unpaid levies and proved the amount owing.
  • The manager is entitled to recover reasonable costs incurred in collecting unpaid levies.
  • The unit owner accepted the amounts due but explained financial difficulty prevented payment.

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 filing fees to the manager.

What was the dispute about?

The dispute was about unpaid levies and the associated costs and interest.

How did the court decide, and why?

The court decided that the unit owner must pay the levies as they were determined by the manager and the due dates had passed.

Which laws or rules were applied?

The Unit Titles Act 2010, sections 80(1)(f), 121(1), 124(1), 128, and 176(1), 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 failed to pay the levies by the due date, leading to interest and costs being charged.

Was the decision for or against the person who brought the case?

The decision was for the person who brought the case, the manager.

What does this mean for someone in a similar situation?

Someone in a similar situation should ensure they pay levies on time to avoid interest and additional costs.

What evidence or documents mattered?

The evidence included records proving the amount of levies claimed and the due dates for payment.

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.