Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 56

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 56
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, 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 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the sale may be rescinded, and we may be unable to recover our purchase price, resulting in a complete loss.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