Published tribunal order
Tenancy Tribunal case 9067284 — Unit Titles in Auckland Central, Auckland
Decided 6 Aug 2025 · Published 6 Aug 2025 · Application 9067284
Mixed / unclear
- Unit Titles
Order
- Mark John Karalus Petrie 1 must pay Body Corporate 185696 $18,660.91 immediately, calculated as follows: DescriptionsApplicant Outstanding Levies as at 5 August 2025$12,324.44 Interest: on Outstanding Levies - 20/11/22 to 5/8/25 $532.22 Costs: Debt Collection$287.50 Costs: Section 124 - Legal Costs$4,858.63 Costs: Legal - Appearance at Hearing$158.12 Costs: Application Fee$500.00 Total award$18,660.91 1 The Order issued on 5 August was recalled to correct a typographical error in Mr Petrie’s name.
Reasons
- Counsel for the Body Corporate attended the hearing.
- Mr Petrie did not attend the hearing by the video link in the Notice of Hearing. I tried to call him three times during the hearing, none of the calls were answered.
- 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 owner has made four payments since April 2025 and those have been applied to the oldest outstanding levies.
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.
- The Body Corporate provided evidence of its debt recovery scheme and a full breakdown of legal costs claimed. I am satisfied that the costs ordered above are reasonable.
- 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.