An agreement can be a binding legal document even without being a deed, but in certain situations, it may be necessary to have a deed to ensure the validity and enforceability of the agreement.

A deed is a legal document that must comply with specific formalities and be signed, witnessed, and delivered in a certain way. It is typically used for transactions involving real estate, mortgages, or other significant transfers of property.

So, when does an agreement need to be a deed? Here are some situations where a deed may be required:

1. Transfers of real property: When transferring ownership of real estate, a deed is typically required to ensure that the transfer is valid and enforceable. The deed must be properly executed and recorded to be effective.

2. Mortgages: A mortgage is a type of security interest in real property that allows the lender to foreclose on the property if the borrower fails to make payments. To create a valid mortgage, a deed of trust or mortgage deed is usually required.

3. Covenants: A covenant is a promise or agreement between parties to do or not do something. When a covenant concerns real property, it may need to be made by deed to be enforceable.

4. Gifts of property: A deed may be necessary to transfer ownership of property as a gift, especially if the value of the property is significant.

5. Lease agreements: When creating a lease agreement for a term of more than three years, a deed may be required to make the lease legally binding.

In conclusion, while an agreement can be legally binding without being a deed, certain situations require a deed to ensure the validity and enforceability of the agreement. It is essential to consult with an attorney to determine whether a deed is necessary for your specific situation.