Unit Owner Ordered to Pay Levies and Costs in Tenancy Tribunal Case
📌 In brief
The Tenancy Tribunal ruled that the unit owner must pay levies, interest, and costs to the claimant. The Tribunal determined that the unit owner is responsible for all levies and outgoings payable for the unit, including interest and costs.
⚖️ Legal holding
A unit owner is liable for unpaid levies, interest, and costs under the Unit Titles Act 2010.
📖 What the law says
This section allows a body corporate to decide how much money is needed for various funds and to charge unit owners for these amounts, called levies. These levies are generally calculated based on each unit owner's share of the property's overall value or their ownership interest.
This rule states that a body corporate must set a due date for levy payments. If a levy is not paid, the body corporate can recover the unpaid amount, along with any reasonable costs for collecting it, from the person who owned the unit when the levy was due or the current unit owner.
This section explains that if a unit owner owes money to the body corporate under certain sections (including those related to levies), interest will be added to the unpaid amount. The interest rate charged by the body corporate 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.
📜 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 was responsible for paying all levies and outgoings payable for the unit, including interest and costs.
📚 Full judgment Official document
__________________________________________________________________________________ 9063184 1
[2025] NZTT 9063184
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner, Owner
UNIT ADDRESS: Unit/[ADDRESS], [POSTCODE]
ORDER
1. [NAME] must pay [NAME] $22,077.58 immediately, calculated as follows:
Descriptions Applicant Respondent
Levy $12,512.04
Costs: [NAME] Manager's charges $920.00 Costs: s.124 Solicitor's charges $5,659.63 Costs: Solicitor's charges for hearing time
$316.25
Interest: to 9 April 2025 $2,169.66 Filing Fee $500.00 Total award $22,077.58
Total payable by Respondent to Applicant
$22,077.58
__________________________________________________________________________________ 9063184 2
Reasons:
1. Both parties attended the video hearing.
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. The [NAME] has provided records to prove the amount claimed.
6. Settlement of the purchase of the unit by the owner occurred on 9 September 2022.
7. The claims for unpaid levies include a levy for the period 3 November 2011 to 2 November 2022. This includes a period prior to the settlement of the purchase by the owners.
8. The [NAME] has been unable to locate records of any payments by the previous owner for the unpaid levies for that period. The [NAME] advised the owner that they were unable to find any record of the payment and asked the owners to contact their solicitors to enquire whether the payment had been made on settlement of the purchase. No acceptable response was received from the owner and as a result this application was filed by the [NAME].
9. Section 124 of the Unit Titles Act 2010 provides;
“The amount of any unpaid levy, together with any reasonable costs incurred in collecting the levy, is recoverable as a debt due to the [NAME] by the person who is the unit owner at the time the levy became payable or by the person who is the unit owner at the time proceedings are instituted.” (the emphasis is mine).
10. These proceedings were instituted by the filing of this application on 22 January 2025. The record of title to the premises shows that the owners in this claim were the owners of the unit at the time the proceedings were instituted. The owner is liable for the outstanding levies sought by the [NAME].
__________________________________________________________________________________ 9063184 3
Is the Unit owner liable for interest?
10. 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.
11.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?
12.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. I have reduced the hearing fee applied for to one hour to reflect the actual hearing time.
13.As 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] 09 April 2025
__________________________________________________________________________________ 9063184 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 required by the Unit Titles Act 2010.
- Interest at a rate of up to 10% per annum is chargeable on unpaid levies according to the Act.
- Reasonable costs incurred in collecting unpaid levies are recoverable from the unit owner.
❌ Tends to be rejected
- The previous owner's non-payment of levies prior to the current owner's settlement does not relieve the current owner of liability.
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 the unit owner's responsibility to pay 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 the Unit Titles Act 2010 requires unit owners to pay all levies and outgoings payable for the unit.
Which laws or rules were applied?
The Unit Titles Act 2010, sections 80(1)(f), 121(1), 124(1), and 128 were applied.
What was the argument that mattered most?
The argument that mattered most was that the unit owner is liable for unpaid levies, interest, and costs 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, the decision means that they may be required to pay levies, interest, and costs if they are a unit owner and have unpaid levies.
What evidence or documents mattered?
The evidence included records proving the amount of levies claimed and the due dates for payment.