diff --git a/src/town_cmd.cpp b/src/town_cmd.cpp
index c938b85e2d..1a536ec4b5 100644
--- a/src/town_cmd.cpp
+++ b/src/town_cmd.cpp
@@ -2170,17 +2170,19 @@ std::tuple<CommandCost, Money, TownID> CmdFoundTown(DoCommandFlag flags, TileInd
 		Town *t;
 		if (random_location) {
 			t = CreateRandomTown(20, townnameparts, size, city, layout);
-			if (t == nullptr) return { CommandCost(STR_ERROR_NO_SPACE_FOR_TOWN), 0, INVALID_TOWN };
 		} else {
 			t = new Town(tile);
 			DoCreateTown(t, tile, townnameparts, size, city, layout, true);
 		}
 
-		new_town = t->index;
 		UpdateNearestTownForRoadTiles(false);
 		old_generating_world.Restore();
 
-		if (t != nullptr && !text.empty()) {
+		if (t == nullptr) return { CommandCost(STR_ERROR_NO_SPACE_FOR_TOWN), 0, INVALID_TOWN };
+
+		new_town = t->index;
+
+		if (!text.empty()) {
 			t->name = text;
 			t->UpdateVirtCoord();
 		}