Published tribunal order
Tenancy Tribunal case 9056224 — Tenancy dispute in Parnell, Auckland
Decided 11 Nov 2024 · Published 11 Nov 2024 · Application 9056224
Landlord favoured
- Costs
- Interest
- Unit Titles
Order
- Jun Wang must pay Body Corporate 201036 $21,524.17 immediately, calculated as follows: DescriptionsApplicant Levies (Annual and Ground Rent)$19,190.53 Costs$1,387.10 Interest to 11/11/2024$446.54 Filing Fee$500.00 Total payable by Respondent to Applicant $21,524.17
Reasons
- Mr Wood attended the hearing as counsel for the applicant. There was no appearance for the respondent.
- 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 has determined the levies payable and unit owner's share has been calculated according to their utility interest.
- The body corporate seeks payment of annual levies of $6810.77 due for the period 1 April 2024 to 1 November 2024 and payment of the monthly ground rent due 31 March 2024 to 31 October 2024 in the sum of $12,379.76. The total claimed today is $19,190.53.
- 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. See section 124(1) Unit Titles Act 2010. The body corporate has provided records to prove the amount claimed.
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.
- The body corporate has resolved to charge interest at 10% per annum on unpaid levies. The Body Corporate has proved the amount of interest owing from the due date to the hearing date. A schedule has been provided.
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. In accordance with the judgments (of the District Court and Court of Appeal respectively) in Body Corporate 162791 v Cheah DC Auckland, CIV2014-004- 0120, 24 June 2014 and Body Corporate 162791 v Gilbert [2015] NZCA 185, the Tribunal must order that the reasonable costs incurred by the Body Corporate in recovering the levies, objectively assessed, be paid by a defaulting unit owner. I am satisfied that the costs ordered above are reasonable. The applicant filed cost submissions and time records. The submissions were based on an anticipated one-hour hearing attendance fee but at the hearing the applicant sought to reduce this as the actual hearing time was half an hour. Costs of $1387.10 are ordered accordingly.
- Because the body corporate 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.