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For most stock trades, settlement occurs two business days after the day the order executes, or T+2 (trade date plus two days). For example, if you were to execute an order on Monday, it would typically settle on Wednesday.

Closing might be pushed back if the buyer and the seller have to resolve problems highlighted by a home inspector's report. Typically, the seller offers to repair the issues or credit the buyer to offset the cost of any fixes.

The seller sets the settlement date in the contract of sale. As a general rule, property settlement periods are usually 30 to 90 days, but they can be longer or shorter.

When investments such as stocks, bonds, etc. are purchased or sold, there are two important dates - the trade date, and the settlement date. The trade date is the day on which the transaction occurs, and the settlement date is the day on which payment is made, and possession transfers from the seller to the buyer.

The trade date is the date on which a transaction was executed. The settlement date is the date on which a transaction is completed. The value date is usually, but not always, the settlement date.

The settlement date is when the securities legally change hands. In defining the time between trade and settlement dates, common practice is to denote T + days lag (e.g. T+1, T+2, T+3), where 'T' refers to the trade date. Actual legal ownership is transferred on the settlement date, not the trade date.

To receive a dividend, investors must own shares on the declared record date. With the three-day settlement, shares must be purchased at least three days earlier for an investor to be the owner of record on the record date. This is why a stock goes ex-dividend two business days before the record date.