I've only been able to come up with one way. Using black background.
Transistions, including the fade, do not function on the title track. So what I did was to:
1. Place a black color board on the timeline in a new project.
2. Place and edit the title on the title track set to the same length as the black color board.
3. Produce (render out) that to a media importable file. In my case I work with AVCHD media so I rendered to a streaming 1440x1080 WMV file.
4. Open the project that needs the title and import that title clip, place it between 2 black color boards, then add the fade transition to the beginning and the end of the title clip.
When you play it you see a black frame, the title fades in then fades out to black.
This might also work for a title over video as long as there is little to no movement in the video clip you use.