Newbie investor question about buyer's agent

[Daniel Owens]

I am a new real estate investor and am looking at buying a single family home as a buy-and-hold to rent out.  I received a "buyer's representation" form to sign from the realtor.  I have two questions about it.

1) It says that buyer will pay broker, as broker's compensation, 3% of the sales price.  I thought that the seller paid both the 3% to the seller's agent and 3% to the buyer's agent, no?

2) The realty company also charges a $400 "broker administrative commission" to the realty company upon a successful closing.  Is this a BS charge?  Isn't their compensation from the 3% they get from the seller?

I am in Illinois and the broker is in Minnesota, in case that is important.  

Thanks for the advice ahead of time!