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A tolling agreement is a legal arrangement between two parties that pauses the statute of limitations, preventing it from expiring during negotiations. Builders may propose such agreements while discussing construction defect repairs with an association. While tolling agreements can provide additional time to resolve disputes without filing a lawsuit, caution is advised. These agreements only bind the signatory parties; if the builder goes out of business or issues arise, other potentially liable parties, like general contractors and subcontractors, might not be affected. Consequently, the statute of limitations may expire while negotiations are ongoing.
