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A tolling agreement is a contractual arrangement between two parties that pauses the statute of limitations, allowing more time for negotiation without the pressure of a pending lawsuit. Builders may suggest this agreement while discussing repairs for construction defects. While tolling agreements can facilitate resolution, they bind only the parties involved. This means if the builder ceases operations or issues arise, other potentially liable parties, like general contractors and subcontractors, are not bound by the agreement. Consequently, the statute of limitations may expire during negotiations, potentially jeopardizing claims against those other entities.
