diff --git a/src/fileops.c b/src/fileops.c
index 486ea3bbe..275934ca1 100644
--- a/src/fileops.c
+++ b/src/fileops.c
@@ -125,18 +125,16 @@ int git_futils_isfile(const char *path)
 	struct stat st;
 	int stat_error;
 
-	if (!path)
-		return git__throw(GIT_ENOTFOUND, "No path given to git_futils_isfile");
-
+	assert(path);
 	stat_error = p_stat(path, &st);
 
 	if (stat_error < GIT_SUCCESS)
-		return git__throw(GIT_ENOTFOUND, "%s does not exist", path);
+		return -1;
 
 	if (!S_ISREG(st.st_mode))
-		return git__throw(GIT_ENOTFOUND, "%s is not a file", path);
+		return -1;
 
-	return GIT_SUCCESS;
+	return 0;
 }
 
 int git_futils_exists(const char *path)
@@ -149,7 +147,8 @@ git_off_t git_futils_filesize(git_file fd)
 {
 	struct stat sb;
 	if (p_fstat(fd, &sb))
-		return git__throw(GIT_EOSERR, "Failed to get size of file. File missing or corrupted");
+		return GIT_ERROR;
+
 	return sb.st_size;
 }
 
@@ -273,22 +272,6 @@ int git_futils_direach(
 	return GIT_SUCCESS;
 }
 
-int git_futils_root_offset(const char *path)
-{
-	int offset = 0;
-
-#ifdef GIT_WIN32
-	/* Does the root of the path look like a windows drive ? */
-	if (isalpha(path[0]) && (path[1] == ':'))
-		offset += 2;
-#endif
-
-	if (*(path + offset) == '/')
-		return offset;
-
-	return -1;	/* Not a real error. Rather a signal than the path is not rooted */
-}
-
 int git_futils_mkdir_r(const char *path, int mode)
 {
 	int error, root_path_offset;
@@ -301,7 +284,7 @@ int git_futils_mkdir_r(const char *path, int mode)
 	error = GIT_SUCCESS;
 	pp = path_copy;
 
-	root_path_offset = git_futils_root_offset(pp);
+	root_path_offset = git_path_root(pp);
 	if (root_path_offset > 0)
 		pp += root_path_offset; /* On Windows, will skip the drive name (eg. C: or D:) */
 
@@ -338,7 +321,7 @@ static int retrieve_previous_path_component_start(const char *path)
 {
 	int offset, len, root_offset, start = 0;
 
-	root_offset = git_futils_root_offset(path);
+	root_offset = git_path_root(path);
 	if (root_offset > -1)
 		start += root_offset;
 
@@ -373,7 +356,7 @@ int git_futils_prettify_dir(char *buffer_out, size_t size, const char *path, con
 	buffer_end = path + strlen(path);
 	buffer_out_start = buffer_out;
 
-	root_path_offset = git_futils_root_offset(path);
+	root_path_offset = git_path_root(path);
 	if (root_path_offset < 0) {
 		if (base_path == NULL) {
 			error = p_getcwd(buffer_out, size);
@@ -446,7 +429,6 @@ int git_futils_prettify_dir(char *buffer_out, size_t size, const char *path, con
 	}
 
 	*buffer_out = '\0';
-
 	return GIT_SUCCESS;
 }
 
@@ -472,7 +454,7 @@ int git_futils_prettyify_file(char *buffer_out, size_t size, const char *path, c
 		return error;	/* The callee already takes care of setting the correct error message. */
 
 	path_len = strlen(buffer_out);
-	root_offset = git_futils_root_offset(buffer_out) + 1;
+	root_offset = git_path_root(buffer_out) + 1;
 	if (path_len == root_offset)
 		return git__throw(GIT_EINVALIDPATH, "Failed to normalize file path `%s`. The path points to a folder", path);
 
diff --git a/src/fileops.h b/src/fileops.h
index 52eb2295c..c9ede4978 100644
--- a/src/fileops.h
+++ b/src/fileops.h
@@ -198,6 +198,5 @@ int git_futils_prettify_dir(char *buffer_out, size_t size, const char *path, con
  */
 int git_futils_prettyify_file(char *buffer_out, size_t size, const char *path, const char *base_path);
 
-int git_futils_root_offset(const char *path);
 
 #endif /* INCLUDE_fileops_h__ */
diff --git a/src/path.c b/src/path.c
index 766f67427..1f7a16679 100644
--- a/src/path.c
+++ b/src/path.c
@@ -1,4 +1,7 @@
 #include "common.h"
+#include "path.h"
+#include "posix.h"
+
 #include <stdarg.h>
 #include <stdio.h>
 #include <ctype.h>
@@ -202,3 +205,50 @@ void git_path_join_n(char *buffer_out, int count, ...)
 	*buffer_out = '\0';
 }
 
+int git_path_root(const char *path)
+{
+	int offset = 0;
+
+#ifdef GIT_WIN32
+	/* Does the root of the path look like a windows drive ? */
+	if (isalpha(path[0]) && (path[1] == ':'))
+		offset += 2;
+#endif
+
+	if (*(path + offset) == '/')
+		return offset;
+
+	return -1;	/* Not a real error. Rather a signal than the path is not rooted */
+}
+
+int git_path_prettify(char *path_out, const char *path, const char *base)
+{
+	char *result;
+
+	if (base == NULL || git_path_root(path) >= 0) {
+		result = p_realpath(path, path_out);
+	} else {
+		char aux_path[GIT_PATH_MAX];
+		git_path_join(aux_path, base, path);
+		result = p_realpath(aux_path, path_out);
+	}
+
+	return result ? GIT_SUCCESS : GIT_EOSERR;
+}
+
+int git_path_prettify_dir(char *path_out, const char *path, const char *base)
+{
+	size_t end;
+
+	if (git_path_prettify(path_out, path, base) < GIT_SUCCESS)
+		return GIT_EOSERR;
+
+	end = strlen(path_out);
+
+	if (end && path_out[end - 1] != '/') {
+		path_out[end] = '/';
+		path_out[end + 1] = '\0';
+	}
+
+	return GIT_SUCCESS;
+}
diff --git a/src/path.h b/src/path.h
index 1bae9dfbe..36e22a768 100644
--- a/src/path.h
+++ b/src/path.h
@@ -59,6 +59,11 @@ GIT_INLINE(void) git_path_join(char *buffer_out, const char *path_a, const char
 	git_path_join_n(buffer_out, 2, path_a, path_b);
 }
 
+int git_path_root(const char *path);
+
+int git_path_prettify(char *path_out, const char *path, const char *base);
+int git_path_prettify_dir(char *path_out, const char *path, const char *base);
+
 #ifdef GIT_WIN32
 GIT_INLINE(void) git_path_mkposix(char *path)
 {
diff --git a/src/repository.c b/src/repository.c
index a8ead3a32..48c8e2b7e 100644
--- a/src/repository.c
+++ b/src/repository.c
@@ -39,7 +39,6 @@
 #define GIT_OBJECTS_PACK_DIR GIT_OBJECTS_DIR "pack/"
 
 #define GIT_FILE_CONTENT_PREFIX "gitdir: "
-#define GIT_FILE_CONTENT_PREFIX_LENGTH 8
 
 #define GIT_BRANCH_MASTER "master"
 
@@ -135,7 +134,7 @@ static int check_repository_dirs(git_repository *repo)
 
 	/* Ensure HEAD file exists */
 	git_path_join(path_aux, repo->path_repository, GIT_HEAD_FILE);
-	if (git_futils_exists(path_aux) < 0)
+	if (git_futils_isfile(path_aux) < 0)
 		return git__throw(GIT_ENOTAREPO, "HEAD file is missing");
 
 	return GIT_SUCCESS;
@@ -160,6 +159,26 @@ static int guess_repository_dirs(git_repository *repo, const char *repository_pa
 	return assign_repository_dirs(repo, repository_path, NULL, NULL, path_work_tree);
 }
 
+static int quickcheck_repository_dir(const char *repository_path)
+{
+	char path_aux[GIT_PATH_MAX];
+
+	/* Ensure HEAD file exists */
+	git_path_join(path_aux, repository_path, GIT_HEAD_FILE);
+	if (git_futils_isfile(path_aux) < 0)
+		return GIT_ERROR;
+
+	git_path_join(path_aux, repository_path, GIT_OBJECTS_DIR);
+	if (git_futils_isdir(path_aux) < 0)
+		return GIT_ERROR;
+
+	git_path_join(path_aux, repository_path, GIT_REFS_DIR);
+	if (git_futils_isdir(path_aux) < 0)
+		return GIT_ERROR;
+
+	return GIT_SUCCESS;
+}
+
 static git_repository *repository_alloc()
 {
 	int error;
@@ -352,23 +371,6 @@ cleanup:
 	return git__rethrow(error, "Failed to open repository");
 }
 
-static int abspath(char *buffer_out, size_t size, const char *path)
-{
-	assert(buffer_out && size >= GIT_PATH_MAX);
-
-	#ifdef GIT_WIN32
-		if (_fullpath(buffer_out, path, size) == NULL)
-			return git__throw(GIT_EOSERR, "Failed to retrieve real path: %s causing errors", buffer_out);
-	#else
-		if (realpath(path, buffer_out) == NULL)
-			return git__throw(GIT_EOSERR, "Failed to retrieve real path: %s causing errors", buffer_out);
-	#endif
-
-	git_path_mkposix(buffer_out);
-
-	return GIT_SUCCESS;
-}
-
 static int retrieve_device(dev_t *device_out, const char *path)
 {
 	struct stat path_info;
@@ -393,7 +395,7 @@ static int retrieve_ceiling_directories_offset(const char *path, const char *cei
 
 	assert(path);
 
-	min_len = git_futils_root_offset(path) + 1;
+	min_len = git_path_root(path) + 1;
 
 	if (ceiling_directories == NULL || min_len == 0)
 		return min_len;
@@ -402,13 +404,13 @@ static int retrieve_ceiling_directories_offset(const char *path, const char *cei
 		for (sep = ceil; *sep && *sep != GIT_PATH_LIST_SEPARATOR; sep++);
 		len = sep - ceil;
 
-		if (len == 0 || len > GIT_PATH_MAX || git_futils_root_offset(ceil) == -1)
+		if (len == 0 || len > GIT_PATH_MAX || git_path_root(ceil) == -1)
 			continue;
 
 		strncpy(buf, ceil, len);
 		buf[len] = '\0';
 
-		if (abspath(buf2, sizeof(buf2), buf) < GIT_SUCCESS)
+		if (p_realpath(buf, buf2) == NULL)
 			continue;
 
 		len = strlen(buf2);
@@ -426,13 +428,13 @@ static int retrieve_ceiling_directories_offset(const char *path, const char *cei
 	return max_len <= min_len ? min_len : max_len;
 }
 
-static int read_gitfile(char *path_out, size_t size, const char *file_path, const char *base_path)
+static int read_gitfile(char *path_out, const char *file_path, const char *base_path)
 {
 	git_fbuffer file;
 	int error, end_offset;
 	char *data;
 
-	assert(file_path && path_out && size > 0);
+	assert(path_out && file_path && path_out);
 
 	error = git_futils_readbuffer(&file, file_path);
 
@@ -451,22 +453,19 @@ static int read_gitfile(char *path_out, size_t size, const char *file_path, cons
 	for (;data[end_offset] == '\r' || data[end_offset] == '\n'; --end_offset);
 	data[end_offset + 1] = '\0';
 
-	if (GIT_FILE_CONTENT_PREFIX_LENGTH == end_offset + 1) {
+	if (STRLEN(GIT_FILE_CONTENT_PREFIX) == end_offset + 1) {
 		git_futils_freebuffer(&file);
 		return git__throw(GIT_ENOTFOUND, "No path in git file `%s`", file_path);
 	}
 
-	error = git_futils_prettify_dir(path_out, size, data + GIT_FILE_CONTENT_PREFIX_LENGTH, base_path);
-	if (error == GIT_SUCCESS) {
-		end_offset = strlen(path_out);
-
-		if (end_offset > 0 && path_out[end_offset - 1] == '/')
-			path_out[end_offset - 1 ] = '\0';
-	}
-
+	data = data + STRLEN(GIT_FILE_CONTENT_PREFIX);
+	error = git_path_prettify_dir(path_out, data, base_path);
 	git_futils_freebuffer(&file);
 
-	return error;
+	if (error == 0 && git_futils_exists(path_out) == 0)
+		return GIT_SUCCESS;
+
+	return git__throw(GIT_EOBJCORRUPTED, "The `.git` file points to an inexisting path");
 }
 
 static void git_repository__free_dirs(git_repository *repo)
@@ -498,7 +497,6 @@ void git_repository_free(git_repository *repo)
 
 int git_repository_discover(char *repository_path, size_t size, const char *start_path, int across_fs, const char *ceiling_dirs)
 {
-	git_repository repo;
 	int error, ceiling_offset;
 	char bare_path[GIT_PATH_MAX];
 	char normal_path[GIT_PATH_MAX];
@@ -506,80 +504,70 @@ int git_repository_discover(char *repository_path, size_t size, const char *star
 	dev_t current_device = 0;
 
 	assert(start_path && repository_path);
-	memset(&repo, 0x0, sizeof(git_repository));
-
-	error = abspath(bare_path, sizeof(bare_path), start_path);
 
+	error = git_path_prettify_dir(bare_path, start_path, NULL);
 	if (error < GIT_SUCCESS)
-		goto cleanup;
+		return error;
 
 	if (!across_fs) {
 		error = retrieve_device(&current_device, bare_path);
-
 		if (error < GIT_SUCCESS)
-			goto cleanup;
+			return error;
 	}
 
 	ceiling_offset = retrieve_ceiling_directories_offset(bare_path, ceiling_dirs);
 	git_path_join(normal_path, bare_path, DOT_GIT);
 
-	while(1){
-		//look for .git file
+	while(1) {
+		/**
+		 * If the `.git` file is regular instead of
+		 * a directory, it should contain the path of the actual git repository
+		 */
 		if (git_futils_isfile(normal_path) == GIT_SUCCESS) {
-			error = read_gitfile(repository_path, size, normal_path, bare_path);
+			error = read_gitfile(repository_path, normal_path, bare_path);
 
-			if (error < GIT_SUCCESS) {
-				git__rethrow(error, "Unable to read git file `%s`", normal_path);
-				goto cleanup;
-			}
-
-			error = discover_repository_dirs(&repo, repository_path);
 			if (error < GIT_SUCCESS)
-				goto cleanup;
+				return git__rethrow(error, "Unable to read git file `%s`", normal_path);
 
-			git_repository__free_dirs(&repo);
+			error = quickcheck_repository_dir(repository_path);
+			if (error < GIT_SUCCESS)
+				return git__throw(GIT_ENOTFOUND, "The `.git` file found at '%s' points"
+					"to an inexisting Git folder", normal_path);
 
 			return GIT_SUCCESS;
 		}
 
-		//look for .git repository
-		error = discover_repository_dirs(&repo, normal_path);
-		if (error < GIT_SUCCESS && error != GIT_ENOTAREPO)
-			goto cleanup;
-
-		if (error == GIT_SUCCESS) {
-			found_path = normal_path;
-			break;
+		/**
+		 * If the `.git` file is a folder, we check inside of it
+		 */
+		if (git_futils_isdir(normal_path) == GIT_SUCCESS) {
+			error = quickcheck_repository_dir(normal_path);
+			if (error == GIT_SUCCESS) {
+				found_path = normal_path;
+				break;
+			}
 		}
 
-		git_repository__free_dirs(&repo);
-
-		//look for bare repository in current directory
-		error = discover_repository_dirs(&repo, bare_path);
-		if (error < GIT_SUCCESS && error != GIT_ENOTAREPO)
-			goto cleanup;
-
+		/**
+		 * Otherwise, the repository may be bare, let's check
+		 * the root anyway
+		 */
+		error = quickcheck_repository_dir(bare_path);
 		if (error == GIT_SUCCESS) {
 			found_path = bare_path;
 			break;
 		}
 
-		git_repository__free_dirs(&repo);
-
 		if (git_path_dirname_r(normal_path, sizeof(normal_path), bare_path) < GIT_SUCCESS)
-			goto cleanup;
+			return git__throw(GIT_EOSERR, "Failed to dirname '%s'", bare_path);
 
 		if (!across_fs) {
 			dev_t new_device;
 			error = retrieve_device(&new_device, normal_path);
 
-			if (error < GIT_SUCCESS)
-				goto cleanup;
-
-			if (current_device != new_device) {
-				error = git__throw(GIT_ENOTAREPO,"Not a git repository (or any parent up to mount parent %s)\n"
-					"Stopping at filesystem boundary (GIT_DISCOVERY_ACROSS_FILESYSTEM_ENVIRONMENT not set).", bare_path);
-				goto cleanup;
+			if (error < GIT_SUCCESS || current_device != new_device) {
+				return git__throw(GIT_ENOTAREPO,"Not a git repository (or any parent up to mount parent %s)\n"
+					"Stopping at filesystem boundary.", bare_path);
 			}
 			current_device = new_device;
 		}
@@ -587,27 +575,18 @@ int git_repository_discover(char *repository_path, size_t size, const char *star
 		strcpy(bare_path, normal_path);
 		git_path_join(normal_path, bare_path, DOT_GIT);
 
-		//nothing has been found, lets try the parent directory
+		// nothing has been found, lets try the parent directory
 		if (bare_path[ceiling_offset] == '\0') {
-			error = git__throw(GIT_ENOTAREPO,"Not a git repository (or any of the parent directories): %s", start_path);
-			goto cleanup;
+			return git__throw(GIT_ENOTAREPO,"Not a git repository (or any of the parent directories): %s", start_path);
 		}
-
 	}
 
-	if (size < (strlen(found_path) + 1) * sizeof(char)) {
-		error = git__throw(GIT_EOVERFLOW, "The repository buffer is not long enough to handle the repository path `%s`", found_path);
-		goto cleanup;
+	if (size < (strlen(found_path) + 2) * sizeof(char)) {
+		return git__throw(GIT_EOVERFLOW, "The repository buffer is not long enough to handle the repository path `%s`", found_path);
 	}
 
-	strcpy(repository_path, found_path);
-	git_repository__free_dirs(&repo);
-
+	git_path_join(repository_path, found_path, "");
 	return GIT_SUCCESS;
-
-	cleanup:
-		git_repository__free_dirs(&repo);
-		return git__rethrow(error, "Failed to discover repository");
 }
 
 git_odb *git_repository_database(git_repository *repo)
@@ -689,15 +668,17 @@ static int repo_init_structure(repo_init *results)
 static int repo_init_find_dir(repo_init *results, const char* path)
 {
 	char temp_path[GIT_PATH_MAX];
-	int error = GIT_SUCCESS;
+	int error;
 
 	error = git_futils_prettify_dir(temp_path, sizeof(temp_path), path, NULL);
 	if (error < GIT_SUCCESS)
-		return git__rethrow(error, "Failed to find directory to initialize repository");
+		return git__throw(GIT_ENOTFOUND, "Invalid directory to initialize repository");
 
-	if (!results->is_bare) {
+//	if (p_realpath(path, temp_path) == NULL)
+//		return git__throw(GIT_ENOTFOUND, "Invalid directory to initialize repository");
+
+	if (!results->is_bare)
 		git_path_join(temp_path, temp_path, GIT_DIR);
-	}
 
 	results->path_repository = git__strdup(temp_path);
 	if (results->path_repository == NULL)
diff --git a/src/unix/posix.h b/src/unix/posix.h
index ab98c451d..079373919 100644
--- a/src/unix/posix.h
+++ b/src/unix/posix.h
@@ -9,6 +9,6 @@
 #define p_unlink(p) unlink(p)
 #define p_mkdir(p,m) mkdir(p, m)
 #define p_fsync(fd) fsync(fd)
-#define p_realpath(p, r) realpath(p, r)
+#define p_realpath(p, po) realpath(p, po)
 
 #endif
diff --git a/src/win32/posix.c b/src/win32/posix.c
index 003ce1fd6..610a4166c 100644
--- a/src/win32/posix.c
+++ b/src/win32/posix.c
@@ -1,4 +1,5 @@
 #include "posix.h"
+#include "path.h"
 #include <errno.h>
 
 int p_unlink(const char *path)
@@ -189,3 +190,13 @@ int p_hide_directory__w32(const char *path)
 	return error;
 }
 
+int p_realpath(const char *orig_path, char *buffer)
+{
+	int ret = GetFullPathName(orig_path, GIT_PATH_MAX, buffer, NULL);
+	if (!ret || ret > GIT_PATH_MAX)
+		return GIT_EOSERR;
+
+	git_path_mkposix(buffer);
+	return GIT_SUCCESS;
+}
+
diff --git a/src/win32/posix.h b/src/win32/posix.h
index 31ee7201c..3b5bff806 100644
--- a/src/win32/posix.h
+++ b/src/win32/posix.h
@@ -21,5 +21,6 @@ extern int p_unlink(const char *path);
 extern int p_lstat(const char *file_name, struct stat *buf);
 extern int p_readlink(const char *link, char *target, size_t target_len);
 extern int p_hide_directory__w32(const char *path);
+extern int p_realpath(const char *orig_path, char *buffer);
 
 #endif
diff --git a/tests/t12-repo.c b/tests/t12-repo.c
index 3b3c7c0ef..4881e758f 100644
--- a/tests/t12-repo.c
+++ b/tests/t12-repo.c
@@ -431,15 +431,15 @@ BEGIN_TEST(discover0, "test discover")
 	must_fail(git_repository_discover(found_path, sizeof(found_path), ALTERNATE_MALFORMED_FOLDER1, 0, ceiling_dirs));
 	must_fail(git_repository_discover(found_path, sizeof(found_path), ALTERNATE_MALFORMED_FOLDER2, 0, ceiling_dirs));
 	must_fail(git_repository_discover(found_path, sizeof(found_path), ALTERNATE_MALFORMED_FOLDER3, 0, ceiling_dirs));
-	must_be_true(git_repository_discover(found_path, sizeof(found_path), ALTERNATE_NOT_FOUND_FOLDER, 0, ceiling_dirs) == GIT_ENOTAREPO);
+	must_fail(git_repository_discover(found_path, sizeof(found_path), ALTERNATE_NOT_FOUND_FOLDER, 0, ceiling_dirs));
 
 	must_pass(append_ceiling_dir(ceiling_dirs, SUB_REPOSITORY_FOLDER));
 	//this must pass as ceiling_directories cannot predent the current
 	//working directory to be checked
 	must_pass(git_repository_discover(found_path, sizeof(found_path), SUB_REPOSITORY_FOLDER, 0, ceiling_dirs));
-	must_be_true(git_repository_discover(found_path, sizeof(found_path), SUB_REPOSITORY_FOLDER_SUB, 0, ceiling_dirs) == GIT_ENOTAREPO);
-	must_be_true(git_repository_discover(found_path, sizeof(found_path), SUB_REPOSITORY_FOLDER_SUB_SUB, 0, ceiling_dirs) == GIT_ENOTAREPO);
-	must_be_true(git_repository_discover(found_path, sizeof(found_path), SUB_REPOSITORY_FOLDER_SUB_SUB_SUB, 0, ceiling_dirs) == GIT_ENOTAREPO);
+	must_fail(git_repository_discover(found_path, sizeof(found_path), SUB_REPOSITORY_FOLDER_SUB, 0, ceiling_dirs));
+	must_fail(git_repository_discover(found_path, sizeof(found_path), SUB_REPOSITORY_FOLDER_SUB_SUB, 0, ceiling_dirs));
+	must_fail(git_repository_discover(found_path, sizeof(found_path), SUB_REPOSITORY_FOLDER_SUB_SUB_SUB, 0, ceiling_dirs));
 
 	//.gitfile redirection should not be affected by ceiling directories
 	must_pass(ensure_repository_discover(REPOSITORY_ALTERNATE_FOLDER, ceiling_dirs, sub_repository_path));