DEFINITION of 'Transferor'

In a legal arrangement, the party who makes the transfer of an asset to another party. A transferor is the side which initiated the transfer of a land title, security ownership, etc. The transferor may choose to make a transfer willingly, or be forced to due to legal circumstances.

BREAKING DOWN 'Transferor'

The transfer of most tangible assets are considered legal transfers, and in this light the transferor's assignment of ownership over to the counterparty is typically considered binding. In such an exchange, the transferor may or may not receive compensation for the exchange, as would be outlined in the terms of the transfer arrangement.

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