diff --git a/lib/dot/propertyNames.jst b/lib/dot/propertyNames.jst
index 51caffc20..ee52b2151 100644
--- a/lib/dot/propertyNames.jst
+++ b/lib/dot/propertyNames.jst
@@ -3,6 +3,8 @@
 {{# def.setupKeyword }}
 {{# def.setupNextLevel }}
 
+var {{=$errs}} = errors;
+
 {{? {{# def.nonEmptySchema:$schema }} }}
   {{
     $it.schema = $schema;
@@ -22,8 +24,6 @@
       , $currentBaseId = it.baseId;
   }}
 
-  var {{=$errs}} = errors;
-
   {{? $ownProperties }}
     var {{=$dataProperties}} = undefined;
   {{?}}
diff --git a/spec/tests/issues/861_empty_propertynames.json b/spec/tests/issues/861_empty_propertynames.json
new file mode 100644
index 000000000..55ce3501f
--- /dev/null
+++ b/spec/tests/issues/861_empty_propertynames.json
@@ -0,0 +1,23 @@
+[
+  {
+    "description": "propertyNames with empty schema (#861)",
+    "schema": {
+      "properties": {
+        "foo": {"type": "string"}
+      },
+      "propertyNames": {}
+    },
+    "tests": [
+      {
+        "description": "valid",
+        "data": {"foo": "bar"},
+        "valid": true
+      },
+      {
+        "description": "invalid",
+        "data": {"foo": 1},
+        "valid": false
+      }
+    ]
+  }
+]