Transmission/Transfer Case question.

I am in the process of swapping the engine from my 96 Cherokee (rusted out) into a 96 Grand Cherokee and am parting out the Cherokee. When I pulled the transfer case away from the transmission, tranny fluid poured out of it. I slid the TC back up to the tranny and drained the transmission. I I know it came from the transmission because it was fresh looking red tranny fluid ( I flushed it a while back), where the fluid I drained from the transfer case was more brown (still definitely tranny fluid).
Is that normal, or is there a bad seal in the tranny? I just need to know so I can be honest about it when I sell it. A mechanic that I work with said he didn't think tranny fluid should have leaked out, but he doesn't know Jeep trannies.

Dustin

I don't know for sure on that year; but it depends on how the TC is mated to the transmission. Is/was there a seal between the TC and tranny, or how was it joined? On my 04 it's bolted to the transmission with (I think) a gasket in between.