Unit Owner Ordered to Pay Levies and Costs in Tenancy Tribunal Case
📌 In brief
The Tenancy Tribunal ordered the unit owner to pay levies, interest, and costs to the claimant for unpaid unit outgoings. The Tribunal ruled that the unit owner must pay all levies and outgoings payable for the unit, including interest and reasonable costs incurred in collecting unpaid levies.
⚖️ Legal holding
A unit owner must pay all levies and outgoings payable for the unit, including interest and reasonable costs incurred in collecting unpaid levies.
📖 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 for unpaid unit outgoings. The Tribunal found that the unit owner must pay all levies and outgoings payable for the unit, including interest and reasonable costs incurred in collecting unpaid levies.
📚 Full judgment Official document
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[2025] NZTT 9062284
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner
UNIT ADDRESS: Unit/[ADDRESS], [POSTCODE], [NAME]
ORDER
1. [NAME] must pay [NAME] $7,581.76 immediately, calculated as follows:
Descriptions Applicant Respondent
Ordinary Levy $2,337.40 Special Levy: Hot Water Loop $103.50 Interest $32.02 Costs: Debt Collection $1,380.00 Costs: Legal $4,503.29 Filing Fee $500.00 Payments Made 22/7/22 to 6/12/24 $1,274.45 Total award $8,856.21 $1,274.45 Total payable by [NAME]
$7,581.76
Reasons:
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1. [NAME] represented the [NAME] at the hearing.
2. The unit owner did not attend by the video link provided and did not answer two calls made to mobile phone numbers during the hearing.
3. The [NAME] has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner. [NAME] provided clear and concise submissions prior to the hearing.
Does the Unit Owner owe the levies claimed?
4. 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.
5. The [NAME] has determined the levies payable and the unit owner's share has been calculated according to their utility interest.
6. 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. The [NAME] has provided records to prove the amounts claimed for ordinary and special levies from 1 May 2021 to 29 November 2024.
7. The unit owner has made small, sporadic payments during that period. Total payments were $1,274.45 and that amount has been credited against the unit owners’ total debt in Order 1 above.
Is the Unit owner liable for interest?
8. 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.
9. The [NAME] has resolved to charge interest at 10% per annum on unpaid levies. The [NAME] has claimed interest owing of $32.02 from the due dates to the hearing date.
10.The [NAME] should have provided a breakdown of how the interest was calculated, particularly given the interim payments made by the owners. In this instance, I am satisfied that the [NAME] is entitled to recover the interest as claimed, taking account of the timing and amount of the payments made.
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
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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.
12.The [NAME] provided detailed evidence of attempts to engage with the unit owners and steps taken to try to recover the debt. I am satisfied that the costs ordered above are reasonable.
13.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] 02 April 2025
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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
- A unit owner must pay all levies and outgoings payable for the unit, as per sections 80(1)(f) and 121(1) of the Unit Titles Act 2010.
- The unit owner has not paid the levies by the due date, and the claimant has provided records to prove the amounts claimed for ordinary and special levies from 1 May 2021 to 29 November 2024.
- If a unit owner fails to pay levies by the due date, interest accrues on the unpaid balance, and the claimant is entitled to recover the interest as claimed, taking account of the timing and amount of the payments made.
- The claimant is entitled to recover any reasonable costs incurred in collecting unpaid levies as a debt due by the owner, as per section 124 of the Unit Titles Act 2010.
- The claimant provided detailed evidence of attempts to engage with the unit owners and steps taken to try to recover the debt, and the costs ordered are reasonable.
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 for unpaid unit outgoings.
What was the dispute about?
The dispute was about the unit owner's obligation to pay levies, interest, and costs for unpaid unit outgoings.
How did the court decide, and why?
The court decided that the unit owner must pay all levies and outgoings payable for the unit, including interest and reasonable costs incurred in collecting unpaid levies, because the unit owner failed to pay the levies by the due date.
Which laws or rules were applied?
The Unit Titles Act 2010, sections 80(1)(f), 121(1), 124(1), and 128, and the Residential Tenancies Act 1986, section 54 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, including interest and reasonable costs incurred in collecting unpaid levies.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case, the claimant.
What does this mean for someone in a similar situation?
For someone in a similar situation, they should ensure they pay all levies and outgoings payable for the unit by the due date to avoid accruing interest and incurring costs.
What evidence or documents mattered?
The evidence and documents that mattered included records proving the amounts claimed for ordinary and special levies, and detailed evidence of attempts to engage with the unit owners and steps taken to try to recover the debt.
