All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.
The word 'Sayyid' is derived from the word 'As-su'dud' which means honour and glory, and it is permissible to call someone who is noble and well-mannered 'Sayyid' or someone who has the qualities of righteousness, kindness, nobility, worship and God-fearingness, patience, wisdom, virtue, chastity and generosity, etc. The Prophet said about Al-Hasan Ibn 'Ali : "This grandson of mine is a 'Sayyid'." [Al-Bukhari]
The Prophet also said to the Ansaar: "Stand up for your Sayyid", meaning for Sa'd Ibn Mu'aath . [Al-Bukhari]
So it is permissible to call 'Sayyid' whoever has the above mentioned qualities, whether he is present or absent.
As regards those who do not have these qualities like the Sufi innovators and insane people, then it is not permissible to call them so. The same applies to a hypocrite. The Prophet said: "Do not call a hypocrite a Sayyid, because if you consider him so, you have indeed caused the anger of Allaah, The Most-High." [Abu Daawood]
But if one thinks that a specific person is of the same status as the Prophet then he is indeed gone astray. The Prophet said: "I am indeed the master (Sayyid) of the child of Aadam." [Muslim, Abu Daawood and At-Tirmithi]
It might be that you are mistaken by thinking that they consider them at the same status as the Prophet .
Allaah Knows best.