If a car is still under financing, it’s commonly marked as encumbered until the loan is settled, and ownership transfer typically requires coordinating payoff and the release of the chattel mortgage/encumbrance before you can complete clean transfer paperwork. LTO issuances cover the processing of registration and cancellation of mortgages and the issuance of an updated Certificate of Registration after cancellation is recorded, while LTO transfer rules and requirements (including general requirements like a notarized deed and OR/CR) apply once the vehicle is ready to be transferred.