diff --git a/Modules/Relationships/src/Relationships.Domain/Aggregates/RelationshipTemplates/RelationshipTemplate.CanBeCollectedWithPasswordTests.cs b/Modules/Relationships/src/Relationships.Domain/Aggregates/RelationshipTemplates/RelationshipTemplate.CanBeCollectedWithPasswordTests.cs
new file mode 100644
index 0000000000..e183151289
--- /dev/null
+++ b/Modules/Relationships/src/Relationships.Domain/Aggregates/RelationshipTemplates/RelationshipTemplate.CanBeCollectedWithPasswordTests.cs
@@ -0,0 +1,90 @@
+using Backbone.Modules.Relationships.Domain.TestHelpers;
+using Backbone.UnitTestTools.BaseClasses;
+using Backbone.UnitTestTools.Data;
+using FluentAssertions;
+using Xunit;
+
+namespace Backbone.Modules.Relationships.Domain.Aggregates.RelationshipTemplates;
+
+public class RelationshipTemplateCanBeCollectedWithPasswordTests : AbstractTestsBase
+{
+    [Fact]
+    public void Can_collect_without_a_password_when_no_password_is_defined()
+    {
+        // Arrange
+        var creator = TestDataGenerator.CreateRandomIdentityAddress();
+        var collector = TestDataGenerator.CreateRandomIdentityAddress();
+
+        var template = TestData.CreateRelationshipTemplate(creator);
+
+        // Act
+        var result = template.CanBeCollectedUsingPassword(collector, null);
+
+        // Assert
+        result.Should().BeTrue();
+    }
+
+    [Fact]
+    public void Can_collect_with_correct_password()
+    {
+        // Arrange
+        var creator = TestDataGenerator.CreateRandomIdentityAddress();
+        var collector = TestDataGenerator.CreateRandomIdentityAddress();
+
+        var template = TestData.CreateRelationshipTemplate(creator, password: [1]);
+
+        // Act
+        var result = template.CanBeCollectedUsingPassword(collector, [1]);
+
+        // Assert
+        result.Should().BeTrue();
+    }
+
+    [Fact]
+    public void Cannot_collect_with_incorrect_password()
+    {
+        // Arrange
+        var creator = TestDataGenerator.CreateRandomIdentityAddress();
+        var collector = TestDataGenerator.CreateRandomIdentityAddress();
+
+        var template = TestData.CreateRelationshipTemplate(creator, password: [1]);
+
+        // Act
+        var result = template.CanBeCollectedUsingPassword(collector, [2]);
+
+        // Assert
+        result.Should().BeFalse();
+    }
+
+    [Fact]
+    public void Can_collect_as_owner_without_a_password()
+    {
+        // Arrange
+        var creator = TestDataGenerator.CreateRandomIdentityAddress();
+
+        var template = TestData.CreateRelationshipTemplate(creator, password: [1]);
+
+        // Act
+        var result = template.CanBeCollectedUsingPassword(creator, null);
+
+        // Assert
+        result.Should().BeTrue();
+    }
+
+    [Fact]
+    public void Can_collect_without_password_when_template_is_already_allocated_by_me()
+    {
+        // Arrange
+        var creator = TestDataGenerator.CreateRandomIdentityAddress();
+        var collector = TestDataGenerator.CreateRandomIdentityAddress();
+
+        var template = TestData.CreateRelationshipTemplate(creator, password: [1]);
+        template.AllocateFor(collector, TestDataGenerator.CreateRandomDeviceId());
+
+        // Act
+        var result = template.CanBeCollectedUsingPassword(collector, null);
+
+        // Assert
+        result.Should().BeTrue();
+    }
+}
diff --git a/Modules/Relationships/src/Relationships.Domain/Aggregates/RelationshipTemplates/RelationshipTemplate.cs b/Modules/Relationships/src/Relationships.Domain/Aggregates/RelationshipTemplates/RelationshipTemplate.cs
index 67ca001ad7..7c2e3d3306 100644
--- a/Modules/Relationships/src/Relationships.Domain/Aggregates/RelationshipTemplates/RelationshipTemplate.cs
+++ b/Modules/Relationships/src/Relationships.Domain/Aggregates/RelationshipTemplates/RelationshipTemplate.cs
@@ -70,12 +70,15 @@ public void AllocateFor(IdentityAddress identity, DeviceId device)
 
     public bool IsAllocatedBy(IdentityAddress identity)
     {
-        return Allocations.All(x => x.AllocatedBy != identity);
+        return Allocations.Any(x => x.AllocatedBy == identity);
     }
 
-    public bool CanBeCollectedUsingPassword(IdentityAddress address, byte[]? password)
+    public bool CanBeCollectedUsingPassword(IdentityAddress activeIdentity, byte[]? password)
     {
-        return Password == null || password != null && Password.SequenceEqual(password) || CreatedBy == address;
+        return Password == null ||
+               password != null && Password.SequenceEqual(password) ||
+               CreatedBy == activeIdentity || // The owner shouldn't need a password to get the template
+               Allocations.Any(a => a.AllocatedBy == activeIdentity); // if the template has already been allocated by the active identity, it doesn't need to pass the password again 
     }
 
     #region Expressions
diff --git a/Modules/Relationships/src/Relationships.Domain/TestHelpers/TestData.cs b/Modules/Relationships/src/Relationships.Domain/TestHelpers/TestData.cs
index fbdadddfc2..c7f4fcebdd 100644
--- a/Modules/Relationships/src/Relationships.Domain/TestHelpers/TestData.cs
+++ b/Modules/Relationships/src/Relationships.Domain/TestHelpers/TestData.cs
@@ -15,9 +15,9 @@ public static class TestData
     public static readonly RelationshipTemplate RELATIONSHIP_TEMPLATE_OF_1 = new(IDENTITY_1, DEVICE_1, 1, null, []);
     public static readonly RelationshipTemplate RELATIONSHIP_TEMPLATE_OF_2 = new(IDENTITY_2, DEVICE_2, 1, null, []);
 
-    public static RelationshipTemplate CreateRelationshipTemplate(IdentityAddress creatorAddress, IdentityAddress? forIdentityAddress)
+    public static RelationshipTemplate CreateRelationshipTemplate(IdentityAddress creatorAddress, IdentityAddress? forIdentityAddress = null, byte[]? password = null)
     {
-        return new RelationshipTemplate(creatorAddress, DeviceId.New(), 999, null, [], forIdentityAddress);
+        return new RelationshipTemplate(creatorAddress, DeviceId.New(), 999, null, [], forIdentityAddress, password);
     }
 
     public static Relationship CreatePendingRelationship(IdentityAddress? from = null, IdentityAddress? to = null)