If I do decide to transfer after my first year, does my current university have the right to take back all financial aid, and assume you are no longer an enrolled student? Not saying I will transfer, but just in case I am not happy with where I am going.
No
The aid given by your current university will not follow you to a new school if you transfer (and merit aid is very hard to get as a transfer) but you will not be required to pay anything back that the first school awarded you in the year you attended.