When is a person described as a Wali (friend) of Allah or a blessed man, and is he treated with special consideration based on his apparent righteousness and blessedness?

A wali (saint/friend of Allah) is a believing, pious person who is steadfast in obeying Allah and avoiding His prohibitions. The appearance of miraculous feats (karamat) is not a condition for sainthood, nor is their absence proof of its denial. Honoring and respecting righteous people is permissible, as long as it does not reach the prohibited extreme of exaggeration, such as bowing down to them. Praising them truthfully is also permissible.