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A tolling agreement is a deal that pauses the statute of limitations during negotiations for construction defect repairs. It gives parties extra time to settle disputes before filing a lawsuit. However, be cautious as it only binds the parties involved. If the builder goes out of business, other potentially liable parties like general contractors and subcontractors may not be bound, leading to an expiration of the statute of limitations. Be mindful of these limitations when considering a tolling agreement during negotiations.
