Published tribunal order
Tenancy Tribunal case 9064244 — Tenancy dispute in Waipori Falls, Outram
Decided 9 Jun 2025 · Published 9 Jun 2025 · Application 9064244
Landlord favoured
- Costs
- Interest
- Unit Titles
Order
- Nathan John Fraei must pay Body Corporate 23599 $6,758.36 immediately, calculated as follows: DescriptionsApplicantRespondent Levies 1 April 2024 to 31 March 2025$5,337.04 Interest to 4 June 2025$346.32 Costs$575.00 Filing Fee$500.00 Total award$6,758.36 Total payable by Respondent to Applicant $6,758.36
Reasons
- Both parties attended the hearing. Mr Pitcaithly and Ms Croxson represented the Body Corporate.
- The Body Corporate has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner, Mr Fraei.
Does Mr Fraei unit owner owe the levies claimed?
- A unit owner must pay all body corporate levies and outgoings payable for the unit: sections 80(1)(f) and 121(1) of the Unit Titles Act 2010 (the Act).
- The Body Corporate has determined the levies payable, and Mr Fraei’s share has been calculated according to his utility interest.
- The Body corporate has fixed the due dates for the levies to be paid, and Mr Fraei has not paid the levies by the due dates: section 124(1) of the Act.
- The Body Corporate has provided records to prove the amount of levies claimed. Mr Fraei did not dispute the amount claimed.
Is Mr Fraei 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: section 128 of the Act.
- 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 dates to 4 June 2025.
Is Mr Fraei liable for costs?
- Pursuant to section 124 of the Act 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 in Body Corporate 162791 v Cheah DC Auckland, CIV2014-004-0120, 24 June 2014, Body Corporate 162791 v Gilbert [2015] NZCA 185, and more recently Body Corporate 346799 v Gueirard [2023] NZDC 19645, 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.
- On the evidence provided by Mr Pitcaithly I am satisfied that the costs claimed are reasonable.
- The Body Corporate has been fully successful in its claim and is therefore entitled to payment of the filing fee: Section 176(1) of the Act and section 102(4) Residential Tenancies Act 1986.