Error message during document/compound type creation is shown on last step

Log in to CMS.
Navigate to configuration.
Select New Document type or New compound type
In Name field enter a name which already exist.
Click next.

Issue - The screen goes to select layout, after selecting layout and clicking finish the error message appears Type already exists.

Suggestion - The error message should appear after clicking the next after entering the name but not on last step clicking the finish.

This issue is unchanged in chrome 19, IE 9, FF 12.