Kite shot a tournament-record 28 on the front nine of the Indianwood Golf & Country Club course en route to a 5-under 65.
At age 62, he would be the oldest winner of this tournament, and he would also become the eighth player to capture both the regular Open title as well as the Senior Open crown. He had the lead at last week's Champions Tour stop on the Monterey Peninsula heading into the final round, but faded into a tie for 10th.
Pavin left the course having apparently shot a 65 that would have tied him for the lead, but tournament officials assessed him a two-shot penalty because his ball moved as he prepared to hit it during play at the fifth hole.
Defending champion Olin Browne had a 69 and was tied for 15th.
Kite eagled the par-4 fourth hole while putting together his record-setting 28.
"It was a lot of fun. You don't get rounds like that very often, especially in major championships," Kite said. "The hole just seemed large and I was hitting some nice shots and obviously getting some nice breaks."
His round was marred, however, by a double-bogey at the par-3 17th.