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A tolling agreement is a contract between two parties that pauses the statute of limitations, allowing more time to negotiate, often presented by builders during discussions with an Association to address construction defects. While there is nothing inherently wrong with a tolling agreement, it is important to note that it only binds the parties involved. If the builder goes out of business or issues arise, other potentially liable parties, like general contractors and subcontractors, are not bound by this agreement. Therefore, the statute of limitations could expire while negotiations are ongoing, potentially jeopardizing claims against those other parties.
