diff --git a/common/flagdproxy/flagdproxy.go b/common/flagdproxy/flagdproxy.go
index 6850bb60c..8f6935e5c 100644
--- a/common/flagdproxy/flagdproxy.go
+++ b/common/flagdproxy/flagdproxy.go
@@ -110,16 +110,14 @@ func (f *FlagdProxyHandler) ensureFlagdProxyResource(ctx context.Context, obj cl
 			return err
 		}
 
-		// If the object exists but is not managed by OFO, return an error
-		if !notFound && !common.IsManagedByOFO(old) {
-			return fmt.Errorf("%s not managed by OFO", obj.GetName())
-		}
-
 		// If the object is not found, we will create it
 		if notFound {
 			return f.Client.Create(ctx, obj)
 		}
-
+		// If the object exists but is not managed by OFO, return an error
+		if !common.IsManagedByOFO(old) {
+			return fmt.Errorf("%s not managed by OFO", obj.GetName())
+		}
 		// If the object is found, update if necessary
 		needsUpdate, err := specDiffers(obj, old)
 		if err != nil {