Do I need to include the property owner on a demand letter?

[keryer]

What is the name of your state? NM

I loaned money to someone in March for drywall and painting services because she converted a shed into a livable space on her mother's property. She paid me back about half of what she owes in a timely manner, but then stopped paying and blocked me 2 months ago. Since hasn't kept her repayment agreement, I intend to take her to small claims, and I have invoices, bank statements, witnesses, etc. to support my claim. I am sending her a demand letter to give her a chance to pay before I have to take legal action. My question is that since the work was for home improvement that was done on her mother's property, should the mother be included in the demand letter and the potential small claims case, or should only the daughter be included since she is the only person on the invoice?

 

[quincy]

What is the name of your state? NM

I loaned money to someone in March for drywall and painting services because she converted a shed into a livable space on her mother's property. She paid me back about half of what she owes in a timely manner, but then stopped paying and blocked me 2 months ago. Since hasn't kept her repayment agreement, I intend to take her to small claims, and I have invoices, bank statements, witnesses, etc. to support my claim. I am sending her a demand letter to give her a chance to pay before I have to take legal action. My question is that since the work was for home improvement that was done on her mother's property, should the mother be included in the demand letter and the potential small claims case, or should only the daughter be included since she is the only person on the invoice?

You loaned money to the person who converted the shed. You did not loan the mother money. You sue the person who defaulted on the loan.

 

[Litigator22]

What is the name of your state? NM

I loaned money to someone in March for drywall and painting services because she converted a shed into a livable space on her mother's property. She paid me back about half of what she owes in a timely manner, but then stopped paying and blocked me 2 months ago. Since hasn't kept her repayment agreement, I intend to take her to small claims, and I have invoices, bank statements, witnesses, etc. to support my claim. I am sending her a demand letter to give her a chance to pay before I have to take legal action. My question is that since the work was for home improvement that was done on her mother's property, should the mother be included in the demand letter and the potential small claims case, or should only the daughter be included since she is the only person on the invoice?

You might wish to send such a letter to the defaulting borrower for the purpose of conveying your resolve to pursue satisfaction through the civil court system, but given the circumstances stated it would have no legal significance. In other words, it is not a condition precedent to prosecuting a civil action.

In order to hold the property owner responsible for repayment of the loan per se you'd need either: (1) Convincing evidence that by her words or actions the owner somehow induced you to make the loan which you would not have otherwise made, or (2) that subsequent to lending the money the owner agreed in writing to repay it.

Also, you might consult a knowledgeable attorney about the prospects of pursuing an equitable claim against the owner for quantum meruit, meaning compensation due because of the benefit inuring to the property.

Adding:

Having given it more thought I wouldn't be averse to doing this:

Send mother a copy of your demand letter to her daughter (Certified Mail RR) advising that if the balance and accrued interest (as stated therein) is not promptly paid in full you will be looking to her for any deficiency by way of reimbursement for the added value to her property.