The Drunken Lizard Pub

Its very inconsistent. I've restarted several times, and most of the time i just waltz right in the Eastwillow's mayor's bedroom and take whatever i want, he doesnt mind whatsoever. Right now i started again, entering the room makes him witness a crime ! I was quite surprised.

All right, i waited for the night, made sure i was "silent" - he still knows i'm there and attacks me !

Same thing with alchemist girl in Kuudad, most of the time i just go in her storage room and take everything right as she watches, but if the game decides that she saw me - she will see me no matter what i do.

everything? silent does only do so much... hide in shadows is kinda needed, and then there's invisibility which i prefer:D

It's a combination of distance, noise, and light. If the mayor is far enough away from his bedroom, he may not notice you going in there.