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A "transform fault" is a fault line where two tectonic plates slide against each-other. Not all faults are transform faults. Some plates separate and allow magma to seep up and like a scab, creating new ground (these are called divergent faults.) Other faults, such as convergent faults, occur when two plates smush into each-other and one is forced below the other where it heats up and is eventually destroyed. Extreme examples of these types of collisions result in the birth of mountain ranges.
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Transform faults are the "crack line" where the two plates slide against each-other going different directions. This, of course, does not happen smoothly; force is built up over a long time and then the plates "slip" in hiccup like motions which cause earthquakes.
Most transform faults are found on the bottom of the ocean, but a famous example of one above sea level is the San Adreas Fault in California. Here is a picture of how the faults work. The transform fault is in red.
A transform fault is the fracture zone around a transform plate boundary. A transform plate boundary is the boundary between two tectonic plates where the two plates are sliding past one another (instead, for example, a place where one plate is sliding under the other).
Although most transform faults are found under the sea, the most famous example of a transform fault is the San Andreas Fault in California. As is the case with this fault, transform faults are quite often the centers of a great deal of earthquake activity.
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