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A tolling agreement is a contract that pauses the statute of limitations in order to allow parties more time to resolve disputes without filing a lawsuit. Builders may propose tolling agreements during negotiations for construction defect repairs. While tolling agreements offer benefits, parties should be cautious as it only binds the parties involved. If the builder goes out of business, other potentially liable parties like general contractors or subcontractors may not be bound, leading to a statute of limitations expiration during negotiations.
