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A tolling agreement is a contract between two parties that pauses the statute of limitations, often suggested by builders during negotiations with an Association for resolving construction defects. While these agreements can provide extra time to settle disputes and avoid lawsuits, caution is necessary. The agreement only holds the parties involved, meaning if the builder goes out of business or issues arise, other liable parties, like general contractors or subcontractors, are not bound by the tolling agreement. Consequently, the statute of limitations may expire while negotiations with the builder are ongoing.
