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AllowedTenancy Tribunal·

Unit Owner Ordered to Pay Unpaid Levies and Costs

Case No.

📌 In brief

The Tenancy Tribunal ordered the Unit Owner to pay unpaid 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 per the Unit Titles Act 2010.

⚖️ Legal holding

A unit owner is required to pay all levies and outgoings payable for the unit.

Topics

unpaid leviesinterest calculationcost 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 128

📖 What the law says

Unit Titles Act 2010 s.121

This rule allows a body corporate to decide how much money is needed for various funds and to charge unit owners for these amounts. These charges, called levies, are used to set up and maintain these funds.

Unit Titles Act 2010 s.124

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, plus any reasonable collection costs, as a debt from the unit owner.

Unit Titles Act 2010 s.128

This rule explains that if a unit owner owes money to the body corporate for certain reasons, 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 unpaid levies, interest, and costs.

📜 Headnote Official document

The Tenancy Tribunal ordered the Unit Owner to pay unpaid 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 per the Unit Titles Act 2010.

📚 Full judgment Official document

__________________________________________________________________________________ 9057444 1

[2025] NZTT 9057444

TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA

APPLICANT: [redacted]

RESPONDENT: [redacted] Owner

UNIT ADDRESS: Unit/[ADDRESS], [POSTCODE], Fiore Wakefield

ORDER

1. [NAME] must pay [NAME] $16,465.12 immediately, calculated as follows:

Descriptions Applicant Respondent

Unpaid levies $9,731.99 [NAME] Manager's debt collection charges

$632.50

[NAME] Manager's handover charge

$287.50

Section 124 costs including GST and disbursements

$3,993.09

Appearance at the hearing ($250.00 per hr x 1hr plus GST)

$287.50

Filing Fee $500.00 Interest to 26 February 2025 $1,032.54 Total award $16,465.12 Total payable by Respondent to Applicant

$16,465.12

__________________________________________________________________________________ 9057444 2

Reasons:

1. Both parties attended the hearing which was held by teleconference on 26 February 2025.

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. The Unit Owner contends that he had not been properly informed of the levies. Ultimately, the responsibility for paying [NAME] levies and maintaining up to date contact information rests primarily with the Unit Owner.

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.

10. I am satisfied that the costs ordered above are reasonable.

__________________________________________________________________________________ 9057444 3

11.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] 28 February 2025

__________________________________________________________________________________ 9057444 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 up to 10% per annum is charged on unpaid levies according to section 128 of the Unit Titles Act 2010.
  • Reasonable costs incurred in collecting unpaid levies are recoverable from the defaulting Unit Owner.

❌ Tends to be rejected

  • The Unit Owner's argument that they were not properly informed about the levies was rejected because the responsibility for paying levies and maintaining contact information rests primarily with 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 unpaid levies, interest, and costs to the claimant.

What was the dispute about?

The dispute was about whether the Unit Owner owed unpaid 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 per the Unit Titles Act 2010.

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 must pay all levies and outgoings payable for the unit, as per 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?

Someone in a similar situation should ensure they pay all levies and outgoings payable for their unit to avoid facing similar penalties.

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.
Unit Owner Ordered to Pay Levies | Tenancy Tribunal | VadeLab