unpaid levies
📖 What is unpaid levies? Meaning and definition
In New Zealand, particularly within the context of unit title properties, 'unpaid levies' are sums of money that a unit owner is legally required to pay to the body corporate but has not. These levies cover the unit owner's share of expenses and outgoings for the unit, as determined by the body corporate, often calculated according to their utility interest.
When a unit owner fails to pay these levies by the fixed due date, the body corporate can apply to the Tenancy Tribunal for recovery. The Tribunal may order the unit owner to pay the outstanding amount, along with any accrued interest and associated costs, including legal costs and the filing fee for the application. Interest can be charged on the unpaid balance, typically up to 10% per annum, if the body corporate has resolved to do so.
The Tenancy Tribunal has the authority to hear applications for the recovery of these unpaid levies. The body corporate must provide records to prove the amount claimed, including the calculation of the unit owner's share and the due dates for payment. The Tribunal will assess whether the unit owner owes the claimed levies and is liable for interest and costs, often referencing the Unit Titles Act 2010.
📋 Requirements
- The applicant is a body corporate (or similar entity) seeking recovery.
- The respondent is a unit owner.
- Levies were determined and calculated according to the unit owner's utility interest.
- A due date for payment of the levies was fixed.
- The unit owner failed to pay the levies by the due date.
- The body corporate has provided records to prove the amount claimed.
📝 Procedure
- The body corporate applies to the Tenancy Tribunal for recovery of unpaid levies, interest, costs, and the filing fee.
- Both parties attend a hearing, which may be remote.
- The Tenancy Tribunal determines if the unit owner owes the claimed levies, interest, and costs.
- The Tribunal issues an order for the unit owner to pay the total award, which includes unpaid levies, interest, legal costs, and the filing fee.
💡 Examples
- A unit owner in Hamilton was ordered to pay over $41,000, which included $26,143.68 in unpaid levies, along with interest and legal costs, after failing to meet their obligations.
- A body corporate successfully recovered $9,054.07 from a unit owner for unpaid levies, interest, and the filing fee after the owner did not pay by the due date.
- The Tenancy Tribunal ordered a unit owner to pay $6,461.06, comprising various levy amounts due over several years and accrued interest, because they had not paid their share of outgoings for their unit.
- Interest at 10% per annum was applied to a unit owner's outstanding levy balance because they failed to pay by the due date, as resolved by the body corporate.
📚 Legal basis
- Unit Titles Act 2010
❓ Frequently asked questions
What are levies in the context of unit titles?
Levies are mandatory payments that unit owners must make to their body corporate to cover their share of the unit's outgoings and expenses, as determined by the body corporate.
What happens if I don't pay my levies by the due date?
If you fail to pay your levies by the due date, interest may accrue on the unpaid balance, and the body corporate can apply to the Tenancy Tribunal to recover the unpaid amount, along with interest and costs.
How much interest can be charged on unpaid levies?
A body corporate may charge interest up to 10% per annum on unpaid levies if they have resolved to do so, as per section 128 of the Unit Titles Act 2010.
Can the Tenancy Tribunal order me to pay legal costs for unpaid levies?
Yes, the Tenancy Tribunal can order a unit owner to pay the body corporate's legal costs and the filing fee incurred in recovering unpaid levies.
How does the body corporate prove the amount of unpaid levies?
The body corporate must provide records to the Tenancy Tribunal that prove the amount claimed, including how the levies were determined, the unit owner's share calculation, and the fixed due dates.
What if I dispute the amount of the levies?
If you dispute your levies obligation, you may file an application to challenge them. However, if the dispute is not resolved in your favour, you will likely still be liable for the unpaid amounts, interest, and costs.