diff --git a/PENDING.md b/PENDING.md
index ba90d3ac8f..3defb10e7d 100644
--- a/PENDING.md
+++ b/PENDING.md
@@ -8,6 +8,7 @@ BREAKING CHANGES
   * [cli] [\#2728](https://github.com/cosmos/cosmos-sdk/pull/2728) Seperate `tx` and `query` subcommands by module
   * [cli] [\#2727](https://github.com/cosmos/cosmos-sdk/pull/2727) Fix unbonding command flow
   * [cli] [\#2786](https://github.com/cosmos/cosmos-sdk/pull/2786) Fix redelegation command flow
+  * [cli] [\#2804](https://github.com/cosmos/cosmos-sdk/issues/2804) Check whether key exists before passing it on to `tx create-validator`.
 
 * Gaia
 
diff --git a/cmd/gaia/init/gentx.go b/cmd/gaia/init/gentx.go
index 449eb2b85b..6d66f2e306 100644
--- a/cmd/gaia/init/gentx.go
+++ b/cmd/gaia/init/gentx.go
@@ -3,6 +3,7 @@ package init
 import (
 	"fmt"
 	"github.com/cosmos/cosmos-sdk/client"
+	"github.com/cosmos/cosmos-sdk/client/keys"
 	"github.com/cosmos/cosmos-sdk/cmd/gaia/app"
 	"github.com/cosmos/cosmos-sdk/codec"
 	"github.com/cosmos/cosmos-sdk/server"
@@ -61,6 +62,14 @@ following delegation and commission default parameters:
 				return err
 			}
 
+			kb, err := keys.GetKeyBaseFromDir(viper.GetString(flagClientHome))
+			if err != nil {
+				return err
+			}
+			if _, err = kb.Get(viper.GetString(client.FlagName)); err != nil {
+				return err
+			}
+
 			// Read --pubkey, if empty take it from priv_validator.json
 			if valPubKeyString := viper.GetString(cli.FlagPubKey); valPubKeyString != "" {
 				valPubKey, err = sdk.GetConsPubKeyBech32(valPubKeyString)