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A tolling agreement halts the statute of limitations between two parties, allowing time to negotiate, often proposed by builders addressing construction defects. While beneficial for extending resolution time without legal action, it poses risks. The agreement only binds the involved parties; if the builder goes out of business or faces issues, other potentially liable parties, like general contractors and subcontractors, remain unaffected. Consequently, the statute of limitations could expire during negotiations, limiting options for pursuing claims against these other parties.
