Legal Question in Real Estate Law in California

Yes, it does.

Release of the lis pendens does not affect the jurisdiction of the court.

See Code of Civil Procedure section 410.50(b): "Jurisdiction over the parties and the subject matter of an action continues throughout subsequent proceedings in the action."

The court may have jurisdiction many years after the case is over and dismissed. For example, in Goldman v. Simpson (2008) 160 Cal.App.4th 255, the Superior Court was held to still have jurisdiction over a case when the judgment creditor filed to renew his judgment. Although renewal of a judgment is just a ministerial duty of the clerk, it was a subsequent proceeding such that the original trial court still had jurisdiction over the judgment debtor's attempts to wriggle out of renewal and enforcement on the ground that he was no longer a resident of California.

The court loses certain powers over the parties over time by statute, but not all, and the release of a lis pendens has no impact on jurisdiction.

Actually Mr. Whipple is not quite correct. The court loses jurisdiction upon dismissal of the case. So if the case was settled and the action dismissed, the court has no further jurisdiction. If the case was settled under section 664.6 of the Code of Civil Procedure, meaning the court retained jurisdiction to enforce the settlement, then the case was not dismissed and the court still has jurisdiction. A judgment is not a dismissal, so the court has jurisdiction over a case that has gone to judgment until the judgment is satisfied, at which time the case is dismissed. Mr. Whipple is correct, however, that a Lis Pendens and it's release have nothing to do with jurisdiction. A Lis Pendens is merely a notice in the chain of title to the property that there is a lawsuit that could affect title to the property.