Closing on the property / Title and Attorney charges

[Manish Shah]

Hi,

I have signed on an agreement to purchase a property. The property is small (140K) and wanted to keep the closing cost down. I asked the title company recommended to me for the details of the charges and they provided by almost $1650 or charges ( title insurance is $695.0,  Settlement fee $350.00,  Searches approx. $605.00). Can somebody explain me each of this and if its mandatory. This is separate from the attorney fees which I was quoted anywhere from $800 to $1200. To me, $2850 is a huge cost for a process that's fairly routine. I understand some of this is important and hence need guidance from the community. I am in Morris County/NJ. 

Thank you,
Manish Shah