Where I am, they don't send inspectors around to verify people living in homes are related, they get reported by frustrated neighbors who call in.

Sounds like it’s a small office and the rent is small, so it should be easily verifiable.

This is basically where docusign asks personal questions from your credit report to verify your identity prior to signing.

Are you taking the borrower's word for it or do you have a way to verify this?

To check if they have liens, you can take it to your local title company but what happens if there’s a lot of properties you want to invest in, since it can cost some money to check the liens on the property, is there a cheaper way to verify this information so that you don’t purchase a 20,000 home with a 60,000 lien on it?

How did you verify the rent being paid?

No legit buyers want their time wasted, so, in the words of Ronald Regan......trust, yet verify.  

When I verified her employment, she works at a grocery store that I think her husband or family owns.My spidey senses are telling me she is renting my condo for her daughter....I'm really on the fence about renting to the applicant...what would you do?

At the end of the day, you have to verify everything the seller is telling you especially if you have never transacted with them.  

I have checked the tax records and verified he is the current owner and taxes are up to date.