diff --git a/ax/modelbridge/tests/test_derelativize_transform.py b/ax/modelbridge/tests/test_derelativize_transform.py
index 270e559bd4a..3874e4a9cbe 100644
--- a/ax/modelbridge/tests/test_derelativize_transform.py
+++ b/ax/modelbridge/tests/test_derelativize_transform.py
@@ -6,7 +6,7 @@
 
 from copy import deepcopy
 from unittest import mock
-from unittest.mock import patch
+from unittest.mock import Mock, patch
 
 import numpy as np
 from ax.core.data import Data
@@ -75,20 +75,13 @@ def setUp(self) -> None:
             ]
         ),
     )
-    # pyre-fixme[3]: Return type must be annotated.
     def test_DerelativizeTransform(
         self,
-        # pyre-fixme[2]: Parameter must be annotated.
-        mock_predict,
-        # pyre-fixme[2]: Parameter must be annotated.
-        mock_fit,
-        # pyre-fixme[2]: Parameter must be annotated.
-        mock_observations_from_data,
-    ):
-        t = Derelativize(
-            search_space=None,
-            observations=[],
-        )
+        mock_predict: Mock,
+        mock_fit: Mock,
+        mock_observations_from_data: Mock,
+    ) -> None:
+        t = Derelativize(search_space=None, observations=[])
 
         # ModelBridge with in-design status quo
         search_space = SearchSpace(
@@ -167,6 +160,13 @@ def test_DerelativizeTransform(
         obsf = mock_predict.mock_calls[0][1][1][0]
         obsf2 = ObservationFeatures(parameters={"x": 2.0, "y": 10.0})
         self.assertTrue(obsf == obsf2)
+        self.assertEqual(mock_predict.call_count, 1)
+
+        # The model should not be used when `use_raw_status_quo` is True
+        t2 = deepcopy(t)
+        t2.config["use_raw_status_quo"] = True
+        t2.transform_optimization_config(deepcopy(oc), g, None)
+        self.assertEqual(mock_predict.call_count, 1)
 
         # Test with relative constraint, out-of-design status quo
         mock_predict.side_effect = RuntimeError()
@@ -215,7 +215,7 @@ def test_DerelativizeTransform(
                 ),
             ]
         )
-        self.assertEqual(mock_predict.call_count, 2)
+        self.assertEqual(mock_predict.call_count, 1)
 
         # Raises error if predict fails with in-design status quo
         g = ModelBridge(
diff --git a/ax/modelbridge/transforms/derelativize.py b/ax/modelbridge/transforms/derelativize.py
index 57b36385ddb..64563733c0d 100644
--- a/ax/modelbridge/transforms/derelativize.py
+++ b/ax/modelbridge/transforms/derelativize.py
@@ -4,6 +4,7 @@
 # This source code is licensed under the MIT license found in the
 # LICENSE file in the root directory of this source tree.
 
+from logging import Logger
 from typing import List, Optional, TYPE_CHECKING
 
 import numpy as np
@@ -14,6 +15,7 @@
 from ax.modelbridge.base import unwrap_observation_data
 from ax.modelbridge.transforms.base import Transform
 from ax.modelbridge.transforms.ivw import ivw_metric_merge
+from ax.utils.common.logger import get_logger
 from ax.utils.common.typeutils import not_none
 
 
@@ -22,6 +24,9 @@
     from ax import modelbridge as modelbridge_module  # noqa F401
 
 
+logger: Logger = get_logger(__name__)
+
+
 class Derelativize(Transform):
     """Changes relative constraints to not-relative constraints using a plug-in
     estimate of the status quo value.
@@ -59,22 +64,17 @@ def transform_optimization_config(
                 "Optimization config has relative constraint, but model was "
                 "not fit with status quo."
             )
-        try:
-            f, _ = modelbridge.predict([modelbridge.status_quo.features])
-        except Exception:
-            # Check if it is out-of-design.
-            if use_raw_sq or not modelbridge.model_space.check_membership(
-                modelbridge.status_quo.features.parameters
-            ):
-                # Out-of-design: use the raw observation
-                sq_data = ivw_metric_merge(
-                    obsd=not_none(modelbridge.status_quo).data,
-                    conflicting_noiseless="raise",
-                )
-                f, _ = unwrap_observation_data([sq_data])
-            else:
-                # Should have worked.
-                raise
+
+        sq = not_none(modelbridge.status_quo)
+        # Only use model predictions if the status quo is in the search space (including
+        # parameter constraints) and `use_raw_sq` is false.
+        if not use_raw_sq and modelbridge.model_space.check_membership(
+            sq.features.parameters
+        ):
+            f, _ = modelbridge.predict([sq.features])
+        else:
+            sq_data = ivw_metric_merge(obsd=sq.data, conflicting_noiseless="raise")
+            f, _ = unwrap_observation_data([sq_data])
 
         # Plug in the status quo value to each relative constraint.
         for c in optimization_config.all_constraints: