Reviewed by Oct 05, 2020| Updated on
When two parties agree to a transfer, one party will be the transferor, and the other party is known as the transferee. As part of a legal contract, the transferor is the party making a transfer to another entity. The terms and conditions follow the move to ensure that both sides are meeting their transition obligations.
Usually the transferee engages in legally binding transactions such as land sales, transfer of stock shares, and transfer of funds from bank accounts. The transferor keeps track of information provided by the terms of the transfer, including fee payment.
A common example of a major move in a modern economy includes the transfer of a house and its associated land from the current owner to a new owner. Often this exchange involves a bank as a provider of third-party mortgages.
In the case above, the transition requires more than a simple exchange between two parties because of the bank's legal right to own the asset until the borrower pays the mortgage in full.
Technology now makes asset movement much simpler than in previous decades. A person can now transfer money from their bank account to a friend's account using payment services provided by banks and other online payment companies. Mobile banking apps often allow the transfer of money from one account to another using a mobile or desktop computer.
Investment services also provide simple funds transfer capabilities between accounts, as well as between financial institutions. In the years to come, the introduction of fingerprint and facial recognition technology promises to make transfers of properties much easier and safer.