Which term encompasses buildings and real property?

The term that encompasses buildings and real property is "premises." In legal contexts, "premises" refers to a specific location that includes both the building and the land on which it is situated. It denotes the physical space where activities occur or a specific area that is the subject of legal considerations, such as leases or property disputes. By using "premises," the terminology allows for a broader understanding that includes not just the physical structure but also any associated land and its uses.

In contrast, although terms like "dwelling," "building," and "property" do relate to physical spaces or real estate, they have more specific meanings. "Dwelling" typically refers specifically to a place where people live, "building" denotes just the physical structure without implying the land it occupies, and "property" can refer to ownership rights of various kinds rather than a specific location containing real estate. Thus, "premises" is the most encompassing term in this context, making it the correct choice.