It is imperative to remember that once an agreement of sale has been signed and the suspensive conditions contained therein, if any, has been met, the agreement is legally binding and enforceable against both parties. If the transaction is cancelled after this point, either due to breach or mutual agreement, the conveyancer is entitled to be paid for the work already done on the matter.
Wasted costs merely refer to the amount due to the conveyancer in return for the services rendered until date of cancellation of the agreement. This is usually a percentage of the normal conveyancing fee as well as expenses incurred. The Law Society of South Africa publishes yearly guidelines in which the scale for wasted costs are reflected.
For instance, if the conveyancer has attended to signature of the necessary documents, they will be entitled to 42.5% of the recommended fee.
It will always be in the conveyancer’s prerogative to claim payment of the wasted costs from the party who caused the cancellation.