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A tolling agreement is a legal arrangement between two parties that pauses the statute of limitations, allowing more time for negotiations, particularly in cases of construction defect disputes. Builders may suggest this agreement while discussing repairs with an Association. While beneficial for extending negotiation time without immediately resorting to litigation, caution is advised. The tolling agreement is only binding on the parties involved, meaning if the builder faces financial issues, other potentially liable parties, like general contractors or subcontractors, are not covered by this agreement. Consequently, the statute of limitations could lapse during negotiations.
