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A tolling agreement is a contract between two parties that pauses the statute of limitations, allowing for extended negotiations, particularly in construction defect cases. Builders may propose such agreements to facilitate discussions with an Association. While tolling agreements can provide necessary time to resolve disputes without resorting to lawsuits, caution is advised. They only bind the parties involved, which means if the builder becomes insolvent or other issues arise, additional liable parties like general contractors and subcontractors may not be protected by the agreement. Consequently, the statute of limitations could expire during negotiations.
