Published tribunal order
Tenancy Tribunal case 9053144 — Unit Titles in Wanaka, Wanaka
Decided 14 Aug 2024 · Published 14 Aug 2024 · Application 9053144
Landlord favoured
- Unit Titles
Order
- Blair John Winton Smith, Penelope Jane McKenzie Smith must pay Body Corporate 19797 $6,363.00 immediately, calculated as follows: DescriptionsApplicant Outstanding Levies$5,863.00 Filing Fee$500.00 Total award$6,363.00
- The Body Corporate’s claims for interest and debt collection costs are dismissed.
Reasons
- Both parties attended the hearing which was held by telephone.
- The Body Corporate 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?
- A unit owner must pay all body corporate levies and outgoings payable for the unit. See sections 80(1)(f) and 121(1) Unit Titles Act 2010.
- The Body Corporate committee has determined the levies payable and the unit owner's share has been calculated according to their utility interest. The Body Corporate’s representative said that the committee had authority to set the levy by virtue of a power of delegation contained in a memorandum of lease for the premises.
- In any event, Mr Smith acknowledged that the levies are owed. I have made an order accordingly.
- Mr Smith’s reason for non-payment was that the Body Corporate had not communicated well over his entitlement to stay at the property. This is a timeshare type arrangement and Mr Smith said that he has never been able to stay the property during his ownership. He also said that he had been promised that he could “bank” weeks but that offer was never fulfilled. Those issues are outside of the scope of this hearing, but I note that the Body Corporate representative said that she would contact Mr Smith after the hearing to discuss his concerns and come to a mutually acceptable arrangement.
Is the Unit owner liable for interest?
- If a unit owner fails to pay levies by the due date, interest accrues on the unpaid balance. A body corporate may charge interest up to 10% per annum. See section 128 Unit Titles Act 2010.
- Section 128 provides a limit on the interest charged. It is not a default rate. In an Order in relation to jurisdiction dated 5 July 2024, the Tribunal put the Body Corporate on notice that it would need to provide evidence in relation to the interest claimed. The adjudicator noted: “In my view, the BC must be able to show that it validly resolved to charge interest on unpaid levies and the rate of interest to be charged. The maximum rate under the UTA is 10% but that is not a default rate.”
- The Body Corporate did not provide any evidence of any resolution in relation to interest. The claim for interest is dismissed.
Is the Unit owner liable for costs?
- Pursuant to section 124 UTA, and as resolved at meetings of the Body Corporate, the Body Corporate is entitled to recover any reasonable costs incurred by it in collecting unpaid levies as a debt due by the owner to the Body Corporate. The Body Corporate did not provide any evidence of resolutions regarding debt collection procedures or authorising the Body Corporate or committee to incur costs in relation to debt collection. This claim is also dismissed.
- Because the Body Corporate has succeeded with the claim for levies, I have reimbursed the filing fee. Section 176(1) Unit Titles Act 2010 and section 102(4) Residential Tenancies Act 1986.