diff --git a/rhodecode/lib/vcs/backends/git/repository.py b/rhodecode/lib/vcs/backends/git/repository.py
--- a/rhodecode/lib/vcs/backends/git/repository.py
+++ b/rhodecode/lib/vcs/backends/git/repository.py
@@ -163,7 +163,11 @@ class GitRepository(BaseRepository):
                 else:
                     self._remote.init()
             else:
-                self._remote.assert_correct_path()
+                if not self._remote.assert_correct_path():
+                    raise RepositoryError(
+                        'Path "%s" does not contain a Git repository' %
+                        (self.path,))
+
         # TODO: johbo: check if we have to translate the OSError here
         except OSError as err:
             raise RepositoryError(err)
diff --git a/rhodecode/tests/vcs/test_git.py b/rhodecode/tests/vcs/test_git.py
--- a/rhodecode/tests/vcs/test_git.py
+++ b/rhodecode/tests/vcs/test_git.py
@@ -85,7 +85,7 @@ class TestGitRepository:
         return GitRepository(next(REPO_PATH_GENERATOR), create=True, bare=bare)
 
     def test_wrong_repo_path(self):
-        wrong_repo_path = '/tmp/errorrepo'
+        wrong_repo_path = '/tmp/errorrepo_git'
         with pytest.raises(RepositoryError):
             GitRepository(wrong_repo_path)
 
diff --git a/rhodecode/tests/vcs/test_hg.py b/rhodecode/tests/vcs/test_hg.py
--- a/rhodecode/tests/vcs/test_hg.py
+++ b/rhodecode/tests/vcs/test_hg.py
@@ -79,7 +79,7 @@ class TestMercurialRepository:
         return MercurialRepository(next(REPO_PATH_GENERATOR), create=True)
 
     def test_wrong_repo_path(self):
-        wrong_repo_path = '/tmp/errorrepo'
+        wrong_repo_path = '/tmp/errorrepo_hg'
         with pytest.raises(RepositoryError):
             MercurialRepository(wrong_repo_path)