Your assessment of the issue appears correct. Natural persons are indeed those born into this world as opposed to "artificial persons" created as legal fictions by civil filings like LLC's, Corporations, and Limited Partnerships. Interestingly, in some cases, certain types of irrevocable trusts are classified as "natural persons" as they are non-statutory (not falling under civil law, but rather under the Common Law). A correctory deed to clarify title vesting seems like a reasonable thing to request of the parties, in order to clarify the matter. Does not seem to be a major title flaw, but acting with due diligence in an effort to clear up the matter, seems reasonable.
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