diff --git a/lib/libzfs/libzfs_sendrecv.c b/lib/libzfs/libzfs_sendrecv.c
index 7db7cf74ff55..511895d18658 100644
--- a/lib/libzfs/libzfs_sendrecv.c
+++ b/lib/libzfs/libzfs_sendrecv.c
@@ -3951,24 +3951,6 @@ zfs_setup_cmdline_props(libzfs_handle_t *hdl, zfs_type_t type,
 		if (prop == ZFS_PROP_ORIGIN)
 			continue;
 
-		/*
-		 * we're trying to override or exclude a property that does not
-		 * make sense for this type of dataset, but we don't want to
-		 * fail if the receive is recursive: this comes in handy when
-		 * the send stream contains, for instance, a child ZVOL and
-		 * we're trying to receive it with "-o atime=on"
-		 */
-		if (!zfs_prop_valid_for_type(prop, type, B_FALSE) &&
-		    !zfs_prop_user(name)) {
-			if (recursive)
-				continue;
-			zfs_error_aux(hdl, dgettext(TEXT_DOMAIN,
-			    "property '%s' does not apply to datasets of this "
-			    "type"), name);
-			ret = zfs_error(hdl, EZFS_BADPROP, errbuf);
-			goto error;
-		}
-
 		/* raw streams can't override encryption properties */
 		if ((zfs_prop_encryption_key_param(prop) ||
 		    prop == ZFS_PROP_ENCRYPTION) && raw) {
@@ -3997,6 +3979,16 @@ zfs_setup_cmdline_props(libzfs_handle_t *hdl, zfs_type_t type,
 			 * a property: this is done by forcing an explicit
 			 * inherit on the destination so the effective value is
 			 * not the one we received from the send stream.
+			 */
+			if (!zfs_prop_valid_for_type(prop, type, B_FALSE) &&
+			    !zfs_prop_user(name)) {
+				(void) fprintf(stderr, dgettext(TEXT_DOMAIN,
+				    "Warning: %s: property '%s' does not "
+				    "apply to datasets of this type\n"),
+				    fsname, name);
+				continue;
+			}
+			/*
 			 * We do this only if the property is not already
 			 * locally-set, in which case its value will take
 			 * priority over the received anyway.
@@ -4024,6 +4016,24 @@ zfs_setup_cmdline_props(libzfs_handle_t *hdl, zfs_type_t type,
 				fnvlist_add_nvpair(*oxprops, nvp);
 			break;
 		case DATA_TYPE_STRING: /* -o property=value */
+			/*
+			 * we're trying to override a property that does not
+			 * make sense for this type of dataset, but we don't
+			 * want to fail if the receive is recursive: this comes
+			 * in handy when the send stream contains, for
+			 * instance, a child ZVOL and we're trying to receive
+			 * it with "-o atime=on"
+			 */
+			if (!zfs_prop_valid_for_type(prop, type, B_FALSE) &&
+			    !zfs_prop_user(name)) {
+				if (recursive)
+					continue;
+				zfs_error_aux(hdl, dgettext(TEXT_DOMAIN,
+				    "property '%s' does not apply to datasets "
+				    "of this type"), name);
+				ret = zfs_error(hdl, EZFS_BADPROP, errbuf);
+				goto error;
+			}
 			fnvlist_add_nvpair(oprops, nvp);
 			break;
 		default:
diff --git a/tests/zfs-tests/tests/functional/cli_root/zfs_receive/receive-o-x_props_override.ksh b/tests/zfs-tests/tests/functional/cli_root/zfs_receive/receive-o-x_props_override.ksh
index 6f897a96f3e8..2d3c15c62fc9 100755
--- a/tests/zfs-tests/tests/functional/cli_root/zfs_receive/receive-o-x_props_override.ksh
+++ b/tests/zfs-tests/tests/functional/cli_root/zfs_receive/receive-o-x_props_override.ksh
@@ -259,16 +259,21 @@ log_must zfs destroy -r -f $orig
 log_must zfs destroy -r -f $dest
 
 #
-# 3.7 Verify we can't receive a send stream overriding or excluding properties
-#     invalid for the dataset type unless the stream it's recursive, in which
-#     case only the appropriate properties are set on the destination.
-#
+# 3.7 Verify we can receive a send stream excluding but not overriding
+#     properties invalid for the dataset type, in which case only the
+#     appropriate properties are set on the destination.
 log_must zfs create -V 128K -s $orig
 log_must zfs snapshot $orig@snap1
 log_must eval "zfs send $orig@snap1 > $streamfile_full"
-log_mustnot eval "zfs receive -x atime $dest < $streamfile_full"
 log_mustnot eval "zfs receive -o atime=off $dest < $streamfile_full"
+log_mustnot eval "zfs receive -o atime=off -x canmount $dest < $streamfile_full"
+log_must eval "zfs receive -x atime -x canmount $dest < $streamfile_full"
+log_must eval "check_prop_source $dest type volume -"
+log_must eval "check_prop_source $dest atime - -"
+log_must eval "check_prop_source $dest canmount - -"
 log_must_busy zfs destroy -r -f $orig
+log_must_busy zfs destroy -r -f $dest
+# Recursive sends also accept (and ignore) such overrides
 log_must zfs create $orig
 log_must zfs create -V 128K -s $origsub
 log_must zfs snapshot -r $orig@snap1