diff --git a/ipapython/dnsutil.py b/ipapython/dnsutil.py
index e51dabd37..aec1ec231 100644
--- a/ipapython/dnsutil.py
+++ b/ipapython/dnsutil.py
@@ -39,6 +39,12 @@ if six.PY3:
 logger = logging.getLogger(__name__)
 
 
+class DNSZoneAlreadyExists(dns.exception.DNSException):
+    supp_kwargs = {'zone', 'ns'}
+    fmt = (u"DNS zone {zone} already exists in DNS "
+           "and is handled by server(s): {ns}")
+
+
 @six.python_2_unicode_compatible
 class DNSName(dns.name.Name):
     labels = None  # make pylint happy
@@ -374,10 +380,7 @@ def check_zone_overlap(zone, raise_on_error=True):
                          zone, e)
             ns = []
 
-        msg = u"DNS zone {0} already exists in DNS".format(zone)
-        if ns:
-            msg += u" and is handled by server(s): {0}".format(', '.join(ns))
-        raise ValueError(msg)
+        raise DNSZoneAlreadyExists(zone=zone.to_text(), ns=ns)
 
 
 def _mix_weight(records):
diff --git a/ipaserver/install/bindinstance.py b/ipaserver/install/bindinstance.py
index 80be9ff93..fe04f763e 100644
--- a/ipaserver/install/bindinstance.py
+++ b/ipaserver/install/bindinstance.py
@@ -327,7 +327,7 @@ def read_reverse_zone(default, ip_address, allow_zone_overlap=False):
         if not allow_zone_overlap:
             try:
                 dnsutil.check_zone_overlap(zone, raise_on_error=False)
-            except ValueError as e:
+            except dnsutil.DNSZoneAlreadyExists as e:
                 logger.error("Reverse zone %s will not be used: %s",
                              zone, e)
                 continue
diff --git a/ipaserver/install/dns.py b/ipaserver/install/dns.py
index 40688dc27..36ba6f899 100644
--- a/ipaserver/install/dns.py
+++ b/ipaserver/install/dns.py
@@ -130,13 +130,15 @@ def install_check(standalone, api, replica, options, hostname):
         domain = dnsutil.DNSName(util.normalize_zone(api.env.domain))
         try:
             dnsutil.check_zone_overlap(domain, raise_on_error=False)
-        except ValueError as e:
+        except dnsutil.DNSZoneAlreadyExists as e:
             if options.force or options.allow_zone_overlap:
                 logger.warning("%s Please make sure that the domain is "
                                "properly delegated to this IPA server.",
                                e)
-            else:
-                raise e
+
+            hst = dnsutil.DNSName(hostname).make_absolute().to_text()
+            if hst not in e.kwargs['ns']:
+                raise ValueError(str(e))
 
     for reverse_zone in options.reverse_zones:
         try:
diff --git a/ipaserver/install/server/__init__.py b/ipaserver/install/server/__init__.py
index d9adf76f3..21396e1ac 100644
--- a/ipaserver/install/server/__init__.py
+++ b/ipaserver/install/server/__init__.py
@@ -10,6 +10,7 @@ import random
 
 from ipaclient.install import client
 from ipalib import constants
+from ipalib.util import validate_domain_name
 from ipalib.install import service
 from ipalib.install.service import (enroll_only,
                                     installs_master,
@@ -17,7 +18,6 @@ from ipalib.install.service import (enroll_only,
                                     master_install_only,
                                     prepare_only,
                                     replica_install_only)
-from ipapython.dnsutil import check_zone_overlap
 from ipapython.install import typing
 from ipapython.install.core import group, knob, extend_knob
 from ipapython.install.common import step
@@ -524,10 +524,13 @@ class ServerMasterInstall(ServerMasterInstallInterface):
 
     @domain_name.validator
     def domain_name(self, value):
-        if (self.setup_dns and
-                not self.allow_zone_overlap):
-            print("Checking DNS domain %s, please wait ..." % value)
-            check_zone_overlap(value, False)
+        # There might be an overlap but at this point we don't have
+        # complete installer object to verify that DNS is hosted
+        # by the same machine (i.e. we are already installed).
+        # Later, DNS.install_check will do its zone overlap check
+        # and will make sure to fail if overlap does really exist.
+        # At this point we only verify that value is a valid DNS syntax.
+        validate_domain_name(value)
 
     dm_password = extend_knob(
         ServerMasterInstallInterface.dm_password,
diff --git a/ipaserver/plugins/dns.py b/ipaserver/plugins/dns.py
index c3c096971..014f208b5 100644
--- a/ipaserver/plugins/dns.py
+++ b/ipaserver/plugins/dns.py
@@ -79,7 +79,7 @@ from ipalib.util import (normalize_zonemgr,
 from ipaplatform import services
 from ipapython.dn import DN
 from ipapython.ipautil import CheckedIPAddress
-from ipapython.dnsutil import check_zone_overlap
+from ipapython.dnsutil import check_zone_overlap, DNSZoneAlreadyExists
 from ipapython.dnsutil import DNSName
 from ipapython.dnsutil import related_to_auto_empty_zone
 from ipaserver.dns_data_management import (
@@ -2153,7 +2153,7 @@ class DNSZoneBase_add(LDAPCreate):
         if not options['skip_overlap_check']:
             try:
                 check_zone_overlap(keys[-1], raise_on_error=False)
-            except ValueError as e:
+            except DNSZoneAlreadyExists as e:
                 raise errors.InvocationError(str(e))
 
         return dn