Due to a lack of legal basis and related measure for the implementation of urban land consolidation in Taiwan, the compensation system for the tearing down of buildings in different consolidation areas is diversified. As a result, land owners and authority tend to have conflict. In addition, the timing for land acquisition is also delayed. However, the concept of the "Property Rights Protection" is prevailing, it increases the difficulty of the implementation of urban land consolidation. This article is therefore, based on the review of German literature related to the "Property Rights Protection", to investigate the content of the compensation system for the tearing down of buildings in consolidation area. In order to analyze this issue more thoroughly, the consolidation area of the " Nai-Gang-Tzy" in Taipei County would be taken as an example to be analyzed. Through the questionnaire conducted on buildings owners and experts, a fair compensation system for the loss of buildings can be drawn. After the empirical study, some findings can be pointed out briefly. The incentive for the tearing down of buildings (especially for illegal buildings) could be increased by making a fair compensation system. Most experts believed that the legalization of settlement plan is very important and urgent the loss of the buildings owners. In addition, the negotiation and intervention model can be quite suggested.