Unpaid Levies Case: Claimant Wins at Tenancy Tribunal
📌 In brief
The Tenancy Tribunal ruled in favour of the claimant, ordering the unit owner to pay all levies, interest, and costs related to the unpaid levies. This decision was based on the Unit Titles Act 2010, which requires unit owners to pay all levies and outgoings payable for the unit.
⚖️ Legal holding
A unit owner must pay all levies and outgoings payable for the unit, including interest and reasonable costs incurred by the body corporate in collecting unpaid levies.
📖 What the law says
A body corporate can decide how much money is needed for its various funds and then charge unit owners levies to create and maintain these funds. These levies are calculated based on each unit owner's share of 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 incurred 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 claimant successfully recovered unpaid levies, interest, and costs from the unit owner.
📜 Headnote Official document
The Tenancy Tribunal ruled in favour of the claimant, ordering the unit owner to pay all levies, interest, and costs related to the unpaid levies. The decision was based on the Unit Titles Act 2010, which requires unit owners to pay all levies and outgoings payable for the unit.
📚 Full judgment Official document
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[2025] NZTT 9063285
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner, Owner
UNIT ADDRESS: Unit/Flat 3D1, 118-128 Broadway, Newmarket, Auckland 1023
ORDER
1. [COMPANY] [NAME], [COMPANY] [NAME] must pay [NAME] $6,660.93 immediately, calculated as follows:
Descriptions Applicant Respondent
Ordinary Levy: Due 1 May 2025 $373.77 Costs: legal costs - s124 $5,633.45 Costs: Attendance at hearing $155.25 Filing Fee $500.00 Interest $1.54 Total award $6,662.47 $1.54 Total interest Total award with interest $6,662.47 $1.54 Total payable by Respondent to Applicant
$6,660.93
Reasons:
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1. [NAME] attended today’s hearing for [NAME]. The Respondent did not attend the video hearing and was contacted on the number provided but the number provided was disconnected.
2. The Respondent has been given notice and reminders to attend today’s phone hearing at an email address it has provided to [NAME]. I am satisfied that they are aware of today’s hearing but have chosen not to attend. I have proceeded in their absence.
3. [NAME] filed its application on the 24 January 2025 for recovery of unpaid levies dating back to the 1 February 2023, interest, costs and the filing fee from the unit owner.
4. After filling the claim and incurring the costs of preparing and filing documents for the tribunal [NAME] received a payment on the 14 March 2025 of $3943.62 from the Respondent.
5. The Respondent did not send any communication with the payment. [NAME] applied the payment firstly to the outstanding levies, then to [NAME] debt collection charges and finally to interest owed. The Respondent did not make any payment towards [NAME]’s fees or the application fee.
6. Since the filing of the claim a further levy of $373.77 became due on the 1 May 2025 has not been paid
Does the Unit Owner owe the levies claimed?
7. 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.
8. [NAME] has determined the levies payable and unit owner's share has been calculated according to their utility interest.
9. [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. [NAME] has provided records to prove the amount claimed.
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.[NAME] has resolved to charge interest at 10 % per annum on unpaid levies. [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 [NAME] is entitled to recover any reasonable costs incurred by it in collecting unpaid levies as a debt due by the owner to [NAME]. In
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accordance with the judgments (of the District Court and Court of Appeal respectively) in [NAME] 162791 v Cheah 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 [NAME] in recovering the levies, objectively assessed, be paid by a defaulting unit owner.
13. I am satisfied that the costs are reasonable for the following reasons:
a. [NAME] have kept time records of the time that they have spent on the file. I have reviewed those time records and save for a small amount of time which I consider excessive for the work undertaken (on the 20 November 2024 where the total amount of time charged for discussions between the authors and reception regarding a scanned document was half an hour) I consider that the work that was undertaken was reasonable, and the amount charged was reasonable. However, when I consider that [NAME] will incur charges after the hearing that are not charged then I consider the total amount awarded to be reasonable.
b. [NAME] accepted the charge out rates in the letter of engagement.
c. [NAME] have not queried the invoice.
14.[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] 16 May 2025
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Please read carefully:
SHOULD YOU REQUIRE ANY HELP OR INFORMATION REGARDING THIS MATTER PLEASE CONTACT UNIT TITLE SERVICES [PHONE].
MEHEMA HE PĀTAI TĀU E PĀ ANA KI TENEI TAKE, PĀTAI ATU KI TE TARI UNIT TITLE SERVICES [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 UNIT TITLE SERVICES [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 for the unit.
- The unit owner is liable for interest because they failed to pay levies by the due date.
- The body corporate resolved to charge interest at 10% per annum on unpaid levies.
- The costs incurred by the body corporate in collecting unpaid levies were reasonable.
- The body corporate kept time records for the work done, and the work and amount charged were reasonable.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal ruled in favour of the claimant, ordering the unit owner to pay all levies, interest, and costs related to the unpaid levies.
What was the dispute about?
The dispute was about the unpaid levies, interest, and costs related to the unpaid levies.
How did the court decide, and why?
The court decided in favour of the claimant 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 must pay all levies and outgoings payable for the unit, including interest and reasonable costs incurred by the body corporate 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.
What does this mean for someone in a similar situation?
For someone in a similar situation, it means that they can seek recovery of unpaid levies, interest, and costs from the unit owner under the Unit Titles Act 2010.
What evidence or documents mattered?
The evidence and documents that mattered included the records proving the amount claimed and the time records of the time spent on the file.