Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 37

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 37
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 at risk. Since we may not have obtained title insurance policies for properties we acquired through the auction process, such
instances or such proceedings may result in a complete loss without compensation.

Title defects could lead to material losses on our investments in our properties.

Our title to a property may
be challenged for a variety of reasons, and in such instances title insurance may not prove adequate. For example, while we do not lend
to homeowners and accordingly do not foreclose on a home, our title to properties we acquire at foreclosure auctions may be subject to
challenge based on allegations of defects in the foreclosure process undertaken by other parties. In addition, we have in the past acquired,
and may from time to time in the future acquire, a number of our properties on an “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