Unit Owner Ordered to Pay Levies and Costs in Tenancy Tribunal Case
📌 In brief
The Tenancy Tribunal ruled that a unit owner must pay levies, interest, and costs to the claimant. The ruling was based on the Unit Titles Act 2010, which mandates that unit owners must cover all levies and outgoings.
⚖️ Legal holding
A unit owner must pay all levies and outgoings payable for the unit.
📖 What the law says
This rule allows a body corporate to decide how much money is needed for various funds and to charge unit owners levies to create and maintain these funds. These levies are calculated based on each unit owner's share of utility or ownership interest.
This rule states that a body corporate must set a due date for levy payments. If a levy is not paid, the unpaid amount, along with any reasonable collection costs, can be recovered as a debt from the unit owner who owed it at the time or the current unit owner.
This rule explains that if a unit owner owes money to the body corporate under certain sections, 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 decision was based on the Unit Titles Act 2010, which requires unit owners to pay all levies and outgoings.
📚 Full judgment Official document
__________________________________________________________________________________ 9058564 1
[2025] NZTT 9058564
TENANCY TRIBUNAL AT
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner
UNIT ADDRESS: Unit/Flat [ADDRESS], [POSTCODE]
AMENDED ORDER
1. This order amends and replaces the order dated 14 February 2024. This amended order includes the section 124 UTA costs amount in the calculation and increases the amount to pay to $49,824.80. That is the only change to the original order.
2. [NAME] must pay [NAME] $49,824.80 immediately, calculated as follows:
Descriptions Respondent
Ordinary Levy $11,104.37 Remedial Levy: Construction defects $26,580.97 Insurance Levy $1,419.20 Cleaning $391.00 [NAME] Manager charges $920.00 Costs: Section 124 costs incl GST and disbursements $3,207.50 Costs: Appearance at the hearing $345.00 Filing Fee $500.00 Interest $5,356.76 Total payable by Applicant to Respondent $49,824.80
__________________________________________________________________________________ 9058564 2
Reasons:
1. Only the applicant attended the hearing. The respondent was phone twice at the time of the hearing but calls went to voicemail.
2. The [NAME] has applied for recovery of unpaid levies, interest, cleaning, 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.
Is the Unit owner liable for interest?
6. 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.
7. 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?
8. 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.
9. One hour is the amount of time charged for the solicitor’s cost for appearing at the hearing today.
__________________________________________________________________________________ 9058564 3
Cleaning cost
10.The [NAME] incurred a cleaning fee of $391.00 which has not been paid.
Filing Fee
11.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
__________________________________________________________________________________ 9058564 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
- A unit owner must pay all body corporate levies and outgoings payable for the unit under sections 80(1)(f) and 121(1) of the Unit Titles Act 2010.
- The body corporate has determined the levies payable and the unit owner's share has been calculated according to their utility interest.
- The body corporate has fixed the due date for the levies to be paid, and the unit owner has not paid the levies by that date, so interest accrues under section 124(1) and section 128 of the Unit Titles Act 2010.
- The body corporate is entitled to recover reasonable costs incurred in collecting unpaid levies as a debt due by the owner, and the Tribunal is satisfied that the costs ordered are reasonable.
- Because the body corporate succeeded with the claim, the filing fee is reimbursed under section 176(1) of the Unit Titles Act 2010 and section 102(4) of the Residential Tenancies Act 1986.
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 the levies, interest, and costs because they failed to pay the levies by the due date.
Which laws or rules were applied?
The Unit Titles Act 2010 was applied, specifically sections 80(1)(f), 121(1), 124(1), and 128.
What was the argument that mattered most?
The argument that mattered most was that the unit owner must pay all levies and outgoings as required by 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, failing to pay levies by the due date can result in having to pay levies, interest, and costs.
What evidence or documents mattered?
The evidence included records proving the amount of levies claimed and the due date for payment.