Unit Owner Ordered to Pay Levies and Costs
📌 In brief
The Tenancy Tribunal ordered the unit owner to pay levies, interest, and costs to the claimant. The Tribunal ruled that the unit owner must pay all levies and outgoings payable for the unit as determined by the Body Corporate under the Unit Titles Act 2010.
⚖️ 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 funds and then charge unit owners levies to create and maintain these funds. These levies are calculated based on each unit owner's share, either by their utility interest or ownership interest, depending on the type of fund.
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 under certain sections of the Act, interest will be charged on the unpaid amount. This interest rate cannot be more than 10% per year.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tenancy 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. The Tribunal found that the unit owner must pay all levies and outgoings payable for the unit as determined by the Body Corporate under the Unit Titles Act 2010.
📚 Full judgment Official document
__________________________________________________________________________________ 9063904 1
[2025] NZTT 9063904
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner
UNIT ADDRESS: Unit/[ADDRESS], [POSTCODE], Wadier Apartments
ORDER
[NAME] must pay [NAME] $95,835.20 immediately, calculated as follows:
Descriptions Applicant Respondent
Remedial Levy: due on 14 December 2021
$14,898.93
Remedial Levy: due on 17 January 2022 $6,001.62 Remedial Levy: due on 11 December 2023
$49,920.00
Ordinary Levy: due on 31 January 2023 $2,381.17 Ordinary Levy: due on 31 July 2023 $2,381.17 Ordinary Levy: due on 30 January 2024 $2,671.49 Ordinary Levy: due on 31 July 2024 $2,671.49 Ordinary Levy: due on 30 January 2025 $2,812.97 Interest: to 21 April 2025 $8,152.31 Costs: [NAME]' debt collection charges $584.00 Costs: legal costs $2,635.80 Costs: counsel appearance at hearing $224.25 Filing Fee $500.00 Total award $95,835.20
__________________________________________________________________________________ 9063904 2
Reasons:
1. Both parties attended the hearing by video conference.
2. The [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. The [NAME] has determined the levies payable and unit owner's share has been calculated according to their utility interest.
5. 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.
6. The [NAME] has provided records to prove the amount claimed.
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. 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?
9. 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. I am satisfied that the costs ordered above are reasonable.
__________________________________________________________________________________ 9063904 3
10.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.
J Tam 08 May 2025
__________________________________________________________________________________ 9063904 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.
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, 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 all levies and outgoings payable for the unit as determined by the Body Corporate under the Unit Titles Act 2010.
Which laws or rules were applied?
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 128 Residential Tenancies Act 1986, s 54
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 under the Unit Titles Act 2010.
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?
For someone in a similar situation, they may be required to pay levies, interest, and costs if they fail to do so as determined by the Body Corporate under the Unit Titles Act 2010.
What evidence or documents mattered?
The evidence and documents that mattered included records proving the amount claimed and the calculation of levies and costs.