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What do people do when a school lets them in as a transfer but they have already committed to another place? Is it like getting off a wait list where you can jump to the new schools?

What do you mean? Unless you applied somewhere and were accepted under a binding Early Decision plan, I'm pretty sure you can just back out of your acceptance even if you've committed somewhere. Worst comes to worst you may lose your deposit. Some schools do this super TTTT thing where they make you agree to commit to them before you've heard from other schools. Feel free to commit to them and then renege, they can't do anything about it.

Thanks that's exactly what I was looking to hear.