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https://www.aonsrd.com/WeaponDisplay.aspx?ItemName=Low-Heat&Family=Sear ing%20Grip
So:
1. If I successfully hit KAC+8 then I deal damage and grapple
Or
2. I must declare what I try before attack (deal damage OR grapple attempt)
?
It's #2. You either attempt an attack or you attempt a grapple.
Currently, the only type of weapon that deals damage on a grapple is one with the Throttle property.