Published tribunal order
Tenancy Tribunal case 9059864 — Unit Titles in Manukau, Auckland
Decided 5 Feb 2025 · Published 5 Feb 2025 · Application 9059864
Mixed / unclear
- Unit Titles
Order
- Graeme Earl Kitchen must pay Body Corporate 316863 $10,695.65 immediately, calculated as follows: DescriptionsApplicant Levies$8,095.37 Costs$1,851.00 Interest Filing fee $249.28 $500.00 Total payable by Mr Kitchen to Body Corporate $10,695.65
Reasons
- Both parties attended the hearing.
- The application relates to the balance of unpaid general levies, interest and costs.
- Mr Kitchen does not challenge any of the claims. He has been unable to pay and now intends to sell the unit.
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 levy to be paid, and the unit owner has not paid by that date. The Body Corporate has provided records to prove the amount claimed and ordered above for the levies as ordered above.
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 proven the amount of interest owing, which is claimed only up until 14 October 2024.
- The respondent must pay the amount claimed for interest, ordered above.
Is the unit owner liable for costs?
- The Body Corporate claims legal costs of $390 and $1,461 for the Body Corporate costs. The body Corporate costs relate to time spent dealing with this matter and the various steps taken towards attempting to recover the levies.
- Debt recovery costs are referred to in the budgets approved in minutes of the Body Corporate. Further, in any event, these costs are recoverable as a debt due pursuant to s 124 of the UTA if they amount to “reasonable costs”.
- In accordance with judgments (of the District Court and Court of Appeal respectively) in Body Corporate 162791 v Cheah 1 and Body Corporate 162791 v 1 DC Auckland, CIV2014-004-0120, 24 June 2014. Gilbert, 2 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 consider the legal costs to be very moderate in this case, although noting that most of the leg work has been done by the Body Corporate. This will have kept the costs down, from what they would otherwise have been.
- I am satisfied the costs are all reasonable and I note that in any event, Mr Kitchen agrees with them.
- The the filing fee is recoverable under s 176(1) Unit Titles Act 2010 and s 102(4) Residential Tenancies Act 1986.