I suppose it is written a bit confusingly
Let me try to clarify:
A new player has the right to wait until they are in optimal position ( last to act before the button, AKA the "cutoff" seat)to the dealer button to play.
Most of the time the open seat is in a position other that directly behind the button, so, the new player is offered the option of either coming in immediately( and taking the blinds as they come) or waiting until the blinds/button have passed in order to achieve that optimal position. ( with no penalty, unless its a time game wherein that player must(always, regardless of position) post 1 single small bet before taking a hand).
Which leads to this:
An interesting rule many players don't know or understand, regardless of limit.
If ( as a new player)you enter a game in the cutoff position( right behind the button) you CAN still choose to wait for the button to go by( waiting an entire orbit of hands), BUT you will receive a missed blind button as the blinds pass you the FIRST time.
As standard, then...in order to play you will have to either post both blinds or wait until it is your Big Blind again.
Point being:
The cutoff seat is the optimal position for a new player, there is no reason to wait and hold the seat, players are waiting.
Obviously you can come in at anytime you choose PRIOR to the blinds reaching you with no penalty.