diff --git a/source/backend/api/Services/PropertyOperationService.cs b/source/backend/api/Services/PropertyOperationService.cs
index a606b503fa..ae7dc8a37f 100644
--- a/source/backend/api/Services/PropertyOperationService.cs
+++ b/source/backend/api/Services/PropertyOperationService.cs
@@ -167,6 +167,11 @@ public IEnumerable<PimsPropertyOperation> ConsolidateProperty(IEnumerable<PimsPr
 
         private static void CommonPropertyOperationValidation(IEnumerable<PimsPropertyOperation> operations)
         {
+            if (operations.Any(op => op.SourceProperty?.IsOwned != true))
+            {
+                throw new BusinessRuleViolationException("All source properties must be owned.");
+            }
+
             if (operations.Any(op => op.PropertyOperationNo != operations.FirstOrDefault().PropertyOperationNo))
             {
                 throw new BusinessRuleViolationException("All property operations must have matching operation numbers.");
diff --git a/source/backend/tests/core/Entities/PropertyOperationHelper.cs b/source/backend/tests/core/Entities/PropertyOperationHelper.cs
index 06ceee5d86..124c60a41a 100644
--- a/source/backend/tests/core/Entities/PropertyOperationHelper.cs
+++ b/source/backend/tests/core/Entities/PropertyOperationHelper.cs
@@ -27,8 +27,8 @@ public static Entity.PimsPropertyOperation CreatePropertyOperation(long? propert
             propertyOperation.PropertyOperationTypeCodeNavigation = operationType ?? new Entity.PimsPropertyOperationType() { PropertyOperationTypeCode = PropertyOperationTypes.SUBDIVIDE.ToString(), Description = "SUBDIVIDE", DbCreateUserid = "create user", DbLastUpdateUserid = "last user" };
             propertyOperation.PropertyOperationNo = operationNo;
             propertyOperation.OperationDt = DateTime.UtcNow;
-            propertyOperation.SourceProperty = EntityHelper.CreateProperty(1);
-            propertyOperation.DestinationProperty = EntityHelper.CreateProperty(2);
+            propertyOperation.SourceProperty = EntityHelper.CreateProperty(1, isCoreInventory: true);
+            propertyOperation.DestinationProperty = EntityHelper.CreateProperty(2, isCoreInventory: true);
 
             return propertyOperation;
         }
diff --git a/source/backend/tests/unit/api/Services/PropertyOperationServiceTest.cs b/source/backend/tests/unit/api/Services/PropertyOperationServiceTest.cs
index e12137b77c..2727b94011 100644
--- a/source/backend/tests/unit/api/Services/PropertyOperationServiceTest.cs
+++ b/source/backend/tests/unit/api/Services/PropertyOperationServiceTest.cs
@@ -214,7 +214,7 @@ public void Subdivide_Success_SameSourceDestinationPid()
             // Arrange
             var service = this.CreateDispositionServiceWithPermissions(Permissions.PropertyEdit);
             var propertyService = this._helper.GetService<Mock<IPropertyService>>();
-            var sameProperty = EntityHelper.CreateProperty(3);
+            var sameProperty = EntityHelper.CreateProperty(3, isCoreInventory: true);
             propertyService.Setup(x => x.GetById(It.IsAny<long>())).Returns(sameProperty);
             propertyService.Setup(x => x.GetByPid(It.IsAny<string>())).Returns(sameProperty);
             propertyService.Setup(x => x.RetireProperty(It.IsAny<PimsProperty>(), false)).Returns(sameProperty);
@@ -400,6 +400,38 @@ public void Consolidate_Should_Fail_DestinationInInventory()
             exception.WithMessage("Consolidated child property may not be in the PIMS inventory unless also in the parent property list.");
         }
 
+        [Fact]
+        public void Consolidate_Should_Fail_NotOwnedSource()
+        {
+            // Arrange
+            var service = this.CreateDispositionServiceWithPermissions(Permissions.PropertyEdit);
+            var propertyService = this._helper.GetService<Mock<IPropertyService>>();
+            var sameProperty = EntityHelper.CreateProperty(3);
+            var otherProperty = EntityHelper.CreateProperty(4);
+            propertyService.Setup(x => x.GetMultipleById(It.IsAny<List<long>>())).Returns(new List<PimsProperty> { sameProperty, otherProperty });
+            propertyService.Setup(x => x.GetByPid(It.IsAny<string>())).Throws(new KeyNotFoundException());
+            propertyService.Setup(x => x.RetireProperty(It.IsAny<PimsProperty>(), false)).Returns((PimsProperty p, bool b) => p);
+            propertyService.Setup(x => x.PopulateNewProperty(It.IsAny<PimsProperty>(), true, false)).Returns(sameProperty);
+
+            var operationOne = EntityHelper.CreatePropertyOperation();
+            operationOne.DestinationProperty.PropertyId = 0;
+            operationOne.SourceProperty.PropertyId = 5;
+            sameProperty.IsOwned = false;
+            operationOne.SourceProperty = sameProperty;
+
+            var operations = new List<PimsPropertyOperation>() { operationOne, EntityHelper.CreatePropertyOperation() };
+
+            var repository = this._helper.GetService<Mock<IPropertyOperationRepository>>();
+            repository.Setup(x => x.AddRange(It.IsAny<List<PimsPropertyOperation>>())).Returns(operations);
+
+            // Act
+            Action act = () => service.ConsolidateProperty(operations);
+
+            // Assert
+            var exception = act.Should().Throw<BusinessRuleViolationException>();
+            exception.WithMessage("All source properties must be owned.");
+        }
+
         [Fact]
         public void Consolidate_Success()
         {
@@ -437,8 +469,8 @@ public void Consolidate_Success_SameSourceDestinationPid()
             // Arrange
             var service = this.CreateDispositionServiceWithPermissions(Permissions.PropertyEdit);
             var propertyService = this._helper.GetService<Mock<IPropertyService>>();
-            var sameProperty = EntityHelper.CreateProperty(3);
-            var otherProperty = EntityHelper.CreateProperty(4);
+            var sameProperty = EntityHelper.CreateProperty(3, isCoreInventory: true);
+            var otherProperty = EntityHelper.CreateProperty(4, isCoreInventory: true);
             propertyService.Setup(x => x.GetMultipleById(It.IsAny<List<long>>())).Returns(new List<PimsProperty> { sameProperty, otherProperty });
             propertyService.Setup(x => x.GetByPid(It.IsAny<string>())).Returns(sameProperty);
             propertyService.Setup(x => x.RetireProperty(It.IsAny<PimsProperty>(), false)).Returns((PimsProperty p, bool b) => p);