Title insurance is an insurance policy which protects you from any unknown claims of interest that could arise on your property. The cost is minimal and only gets paid once. There are no renewal premiums. The protection lasts as long as you or your heirs own the property.

Typically, the title company orders a municipal lien and code and permit search on behalf of the parties. It is usually the sellers responsibility to provide a municipal lien search at closing which shows any outstanding utility balances and unrecorded city or county liens and violations; and it is typically the buyers responsibility to obtain a permit and code search with the county and/or municipality to make sure there are no open or expired permits or code violations on the property, since these items run with the land and therefore become the responsibility of the new property owner.

The closing which is also called the settlement, is the event where title to the property transfers from the seller to the buyer. All monetary issues are settled at the closing as well.