Published tribunal order
Tenancy Tribunal case 9060264 — Tenancy dispute in Albany, Auckland
Decided 5 Feb 2025 · Published 5 Feb 2025 · Application 9060264
Landlord favoured
- Interest
- Ordinary Levy
- Unit Titles
Order
- Iron Maiden Trustee Limited must pay Body Corporate 507019 $11,689.89 immediately, calculated as follows: DescriptionsApplicantRespondent Outstanding balance: Levies$5,927.86 Interest$547.63 Debt collection$258.75 Legal (incl hearing)$4,455.65 Filing Fee$500.00 Total award$11,689.89 Total interest Total award with interest$11,689.89 Total payable by Respondent to Applicant $11,689.89
Reasons
- Both parties attended the hearing, conducted via teleconference. Mr Alex Wang appeared as counsel for the applicant. Ms Angela Dougherty is the Director of the owner and represented it.
- The body corporate has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner.
- The Unit Owner accepted the amounts as set in this order and explained the challenges she faced last year. She had been making time payments last year to reduce the debt but no formal acceptance of such an arrangement by the body corporate was evidenced. She seeks to formalise a process of full debt payment with the Body Corporate, after receipt of this order.
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. 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. Filing fee
- 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.