This is correct. You will have to make a downpayment to the builder, and this will vary by builder and developer. With my own, I had to put down 5% on signing the agreement of purchase, 5% a month later, and a final 5% 6 months prior to occupancy. I have recently seen some projects advertised as only requiring 5% up front.
Now, when you first buy a unit that is being built you do not have to "rent" it from the developer. This does not occur until occupancy. When buying a condo there are two important dates to keep in mind: the occupancy date and the closing date.
The occupancy date occurs when the condominium is "substantially" completed. At this point, the builder still owns the unit, but things have progressed enough for you to move in. On your occupancy date, you then must pay the builder a monthyl occupancy fee which is made up of 3 parts: 1) your share of common expenses (roughly equivalent to condo fees); 2) estimated property taxes; and 3) interest on the outstanding balance (ie. in my case, the remaining 85%) which is at a prescribed rate (I believe 6%). You continue to pay occupancy fees to the builder until the condominium corporation has been registered, after which you will reach your closing date (I think it's within 15 days of the registration).
On your closing, a proper accounting of the estimated elements of your occupancy fee will be carried out and any variance added to or subtracted from your amount owing. At this point, title would be registered in your name, and the bank would pay the builder the outstanding amount thus beginning your mortgage in that amount.
As for resale, in my own purchase agreement I was prohibited from re-selling my unit until all units had been sold, or 12 months had passed from closing. This was to insure that the builder didn't have to compete with resale while trying to offload outstanding units. I understand this is fairly common.
