It is expected that this function can be used to transfer ownership of a rezzed object in-place. That is, without requiring the recipient to rez it from inventory. Setting the transfer flag to 0 (no flag) transfers ownership of the object in-place. However any items in the object's inventory that do not have NEXT owner transfer permissions do not transfer with the object, notwithstanding that the items have current owner transfer permissions prior to transferring. Neither the TRANSFER_COPY or TRANSFER_TAKE flags allow transferring in -place. This makes it imposslbe to transfer in-place an object that you want to prevent the recipient from having transfer permissions.