This is a form on a webpage with about 8 text fields. I am curious has anyone seen this pattern which I am thinking of using. The submit button on the form is disabled. If the user clicks in a required input field (name, number etc) but does not type and leaves it then, it displays the error. I feel this is a user friendly option in real time vs hitting submit and then seeing the errors. I know it is used for password creation but have not seen it used this way.

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The answer you're looking for is explained in error message guidelines published by Norman Nielsen Group, the entire article is here.

Avoid prematurely displaying errors. Timing is a crucial aspect of designing effective error messages. Presenting errors too early is a hostile pattern. It’s like grading a test before the student has had a chance to answer. It can make users feel annoyed, belittled, or confused. Don't assume that exploratory interactions (like the user moving text focus from a text box without filling it in) are errors. However, do consider inline, real-time errors for error-prone interactions where users are unlikely to enter the correct information on their first try. This immediate guidance reduces interaction costs for correction.

Personally I would say that displaying an error when input field is empty and user moves the focus away isn't user friendly, it'll more often cause confusion for the user rather than being useful feature. I'd say that most of the validation forms should be as simple as it sounds: required fields with an asterisk symbol, errors displayed after submitting the form (if the form takes more than 100 view height developers should be noted to make sure that user gets scrolled back to the error after submitting the form).

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