Transferee

Transferee is a person or entity to whom a transfer of rights or property is made. The transferee acquires the rights, title, or interests specified in the transfer, subject to any conditions, encumbrances, or prior obligations that remain enforceable. The counterpart of the transferee is the transferor (or assignor), the party who transfers the rights.

In real property, the transferee is the buyer when title is conveyed by deed. In contracts, a transferee may receive rights under a contract through an assignment; obligations may or may not transfer depending on the terms of the assignment or whether a novation is executed to substitute the transferee for the original party.

In corporate and financial contexts, a transferee may acquire assets, contracts, or loans, and may also assume certain liabilities as provided by the transfer agreement. In business restructurings, the transferee may undertake ongoing business activities previously performed by the transferor under applicable law and contract terms.

Legal diligence is important: the transferee should verify title or rights, ensure necessary consents, and identify any encumbrances or conditions. The transferee can incur liability if the transfer is not properly authorized or if obligations were not properly assumed.

In terminology, transferee is often used interchangeably with assignee, though some contexts distinguish the two (for example, an assignment versus a novation). The precise rights and obligations of a transferee are defined by the governing law and the specific terms of the transfer agreement.