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A tolling agreement is a way for two parties to pause the statute of limitations during negotiations, often used by builders when discussing construction defect repairs with an association. It can be helpful in giving parties more time to resolve issues without going to court. However, be cautious as a tolling agreement only applies to the signatory parties, not others who may be liable. If the builder goes out of business, for example, other parties may not be bound by the agreement, potentially leading to the statute of limitations expiring. Be mindful of this when negotiating with builders.
