git init foo.git
cd foo.git
git-annex init
cd ..
git clone foo.git bar
sudo chown root.root foo.git
cd bar
git-annex init
init  fatal: not a git repository: /tmp/foo.git/.git'

This is specific to bare git remotes, for non-bare it detects and warns that safe.directory is needed to use the remote. --Joey

fixed --Joey