Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 38

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 38
---
 “as is” basis, at auctions or otherwise.
When acquiring properties on an “as is” basis, title commitments are often not available prior to purchase and title reports
or title information may not reflect all senior liens, which may increase the possibility of acquiring houses outside predetermined acquisition
and price parameters, purchasing residences with title defects and deed restrictions, HOA restrictions on leasing, or purchasing the wrong
residence without the benefit of title insurance prior to closing. Although we use various policies, procedures, and practices to assess
the state of title prior to purchase and obtain title insurance if an acquired property is placed into a securitization facility in connection
with a mortgage loan financing, there can be no assurance that these policies and procedures will be effective, which could lead to a
material if not complete loss on our investment in such properties.

For properties we acquire
at auction, we similarly may not obtain title insurance prior to purchase, and we are not able to perform the type of title review that
is customary in acquisitions of real property. As a result, our knowledge of potential title issues will be limited, and title insurance
protection may not be in place. This lack of title knowledge and insurance protection may result in third parties having claims against
our title to such properties that may materially and adversely affect the values of the properties or call into question the validity
of our title to such properties. Without title insurance, we are fully exposed to, and would have to defend ourselves against, such claims.
Further, if any such claims are superior to our title to the property we acquired, we risk loss of the property purchased.

Increased scrutiny of title
matters could lead to legal challenges with respect to the validity of the sale. In the absence of title insurance, the sale may be rescinded,
and we may be unable to recover our purchase price, resulting in a complete loss. Title insurance obtained subsequent to purchase offers
little protection against discoverable defects because they are typically excluded from such policies. In addition, any title insurance
on a property, even if acquired, may not cover all defects or the significant legal costs associated with obtaining clear title.

Any of these risks could adversely
affect our operating results, cash flows, and ability to make distributions to our stockholders.

We are subject to certain risks associated with bulk portfolio acquisitions and dispositions.

We have acquired and disposed
of, and may continue to acquire and dispose of, properties we acquire or sell in bulk from or to other owners of residential properties,