Published tribunal order
Tenancy Tribunal case 9075484 — Tenancy dispute in Albany, Auckland
Published 10 February 2026 · Application 9075484
Landlord favoured
- Costs
- Interest
- Unit Titles
Order
- Faith Elisha Wharton must pay Body Corporate 507019 $14,093.81 immediately, calculated as follows: DescriptionsApplicantRespondent Levies to 10.2.26$7,992.10 Costs$4,443.36 Interest for period 21.2.24 to 10.2.26$905.35 Filing Fee$500.00 Hearing fee (incl GST) $253.00 Total award$14,093.81 Total interest Total award with interest$14,093.81 Total payable by Respondent to Applicant $14,093.81
Reasons
- The applicant attended the hearing conducted remotely by video conference. The Body Corporate is represented by counsel. The respondent did not join the hearing via the video link contained within the notice of hearing.
- 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.
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.
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.
- Section 124 UTA states: Recovery of levy (1) A body corporate must fix the date on or before which payments of levies are due. (2) The amount of any unpaid levy, together with any reasonable costs incurred in collecting the levy, is recoverable as a debt due to the body corporate by the person who was the unit owner at the time the levy became payable or by the person who is the unit owner at the time the proceedings are instituted.
- Section 128 UTA provides: Interest on money owing to body corporate (1) If a unit owner owes money to the body corporate under section 121, 124, 125, 126, or 127, interest accrues in respect of so much of the debt as remains unpaid. (2) The amount of interest charged by a body corporate in relation to any unpaid debt must not exceed 10% per annum.
- As the unit owner failed to pay the outstanding levies at the time they fell due, the outstanding levies together with interest and collection costs are recoverable as a debt due to the body corporate.
- Following the judgments of the District Court and Court of Appeal set out below, the Tribunal must order that the reasonable costs incurred by the body corporate in recovering the levies be paid by a defaulting unit owner.
- It is reasonable to expect full and timely compliance by all unit owners on the levies payable when they fall due otherwise a burden is carried disproportionately by those who have paid the levies on time.
- Having been satisfied that the costs charged by counsel for the body corporate and the body corporate secretary are reasonable and actually incurred in collecting the levy, I do not have any discretion to waive any of those costs in favour of defaulting unit owners.
- Section 124 UTA prescribes a statutory debt in favour of the body corporate once levies are properly raised and payable; equally, legal and collection costs and interest become a statutory debt which accords no discretion on the Tribunal to waive or discount, despite the Tribunal exercising a substantial merits and justice jurisdiction pursuant to section 85 of the Residential Tenancies Act 1986 (‘RTA’).
- 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.
- I therefore award the body corporate costs totalling $14,093.81 which includes outstanding levies, legal costs, hearing attendance, debt collection charges, interest and the Tribunal filing fee, as set out in the table above.
- 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.