Sounded like a load of bull, but she was adamant about it (and the call was being recorded so I believe she wouldn't be purposefully lying).Can anybody say whether this is true or false?

Here in lies the dilemma, not sure if you guys would call it that though.  

The health department or whoever regulates restaurants don't know if that chicken is really chicken.

What if I lie and say I am a distant cousin?

At that point, you're toast because you don't want to lie in that situation.I applaud your savvy, and I certainly know people who are doing what you're talking about, but you better have some risk tolerance -- as well as a plan B for that property. 

When we looked at the property initially, over two months ago and at night with all of the previous tenant's belongings still in it, he lied and said it’s “just under 900 square feet”.

However, if you now have to go and get financing, he will feel lied to and I'd understand his not wanting anything more to do with your offer.

Sounds like the seller lied on a disclosure form, which might have nothing to do with the Redfin agent or her e/o insurance would be paying.

Only feel bad if you lie or put up a front, otherwise dont worry.

I could not deal with the lies, etc anymore and I realized that the work was shoddy (once I brought in a new contractor to review).