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A tolling agreement is a contract between two parties that pauses the statute of limitations, allowing more time to negotiate without filing a lawsuit. Builders may propose these agreements during discussions with an Association concerning construction defects. While tolling agreements provide a useful extension for resolving disputes, they only bind the parties involved and do not affect other potentially liable parties, like general contractors and subcontractors. If the builder goes out of business or issues arise, the statute of limitations could expire while negotiations are ongoing. Therefore, caution is advised when entering into such agreements.
