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A tolling agreement is a contract between two parties that pauses the statute of limitations, allowing more time for negotiations without the threat of a lawsuit. Builders may propose this agreement while discussing repairs for construction defects. While tolling agreements can be beneficial by providing extra time to resolve issues, they only bind the parties involved; if the builder goes out of business or other issues arise, additional liable parties like general contractors and subcontractors may not be covered. This situation risks the statute of limitations expiring during negotiations with the builder.
