Which party must legally be able to hold title to real estate?

The correct response emphasizes that a real person or a duly formed entity can hold title to real estate. This encompasses not just individuals, but also various types of organizations such as corporations, limited liability companies (LLCs), and partnerships that are legally recognized. Entities like these are formed according to specific state laws and provide a structure through which they can own, manage, and transfer real property.

This legal capacity enables both individuals and organizations to engage in real estate transactions, providing flexibility in ownership. It acknowledges that real estate can be a significant part of business operations, necessitating the ability for various forms of entities to hold title. This is crucial for the functioning of the real estate market, as it allows for diverse participation and investment opportunities.

The other options limit the scope unnecessarily. For instance, suggesting that only individuals of legal age can hold title ignores the ability of duly formed entities to own property. The option regarding family members implies a limitation that doesn't apply in a legal context, as it is not a requirement for holding title. Similarly, stating that only registered businesses can hold title excludes individual owners and other forms of entities that are not considered "businesses" but still have the legal capacity to own real estate.