Published tribunal order
Tenancy Tribunal case 9062824 — Unit Titles in Auckland Central, Auckland
Decided 14 Jul 2025 · Published 14 Jul 2025 · Application 9062824
Mixed / unclear
- Unit Titles
Order
- The Tribunal declares that the owner is indebted to the body corporate in the sum of $94,259.25. No order for payment of that sum by the owner is made.
Reasons
- The body corporate attended the hearing. Ms Discaya represented the body corporate.
- Mr Park attended the hearing.
- The record of title to the relevant unit provided by the body corporate, indicates that the owner of the unit is Misung Holdings Limited (“Misung”).
- Mr Park is recorded on the register of companies as a director of Misung.
- At the commencement of the hearing, I asked Mr Park whether Misung still existed.
- Mr Park said that Misung had been removed from the register of companies in 2021. That means that as of the date of this hearing, Misung no longer exists. I explained to the parties that the Tribunal did not have the power to make an order for payment against Misung in those circumstances.
- The Tribunal is able to make a declaration as to the amount owing. The body corporate will then need to consider their options for enforcement.
- 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 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. The levies owing as of 31 January 2025 is $79,668.50.
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 31 January 2025 is $13,095.75.
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. The body corporate has provided records of costs of $1,495.00 to 31 January 2025.I am satisfied that the costs are reasonable.
- As the body corporate has succeeded with the claim, I record that I would have reimbursed the filing fee. Section 176(1) Unit Titles Act 2010 and section 102(4) Residential Tenancies Act 1986.